Shutterstock (SSTK)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	111,251	131,393	74,871	71,811	100,490	75,228	87,146	95,832	115,154	76,244	84,046	258,112	314,000	300,579	411,046	363,926	428,574	383,127	311,157	295,711
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	625,286	663,365	432,331	432,977	452,386	424,264	407,565	313,462	383,734	360,073	367,951	303,886	333,784	315,454	282,536	265,323	256,929	245,230	228,882	232,306
Cash ratio		0.18	0.20	0.17	0.17	0.22	0.18	0.21	0.31	0.30	0.21	0.23	0.85	0.94	0.95	1.45	1.37	1.67	1.56	1.36	1.27

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($111,251K + $—K) ÷ $625,286K
= 0.18

The cash ratio of Shutterstock, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, has fluctuated over the years. As of December 31, 2024, the cash ratio stood at 0.18, indicating that the company had $0.18 in cash and cash equivalents for every $1 of current liabilities.

Looking at the trend over the past few years, we observed that the cash ratio has gradually decreased from 1.67 on December 31, 2020, to 0.18 on December 31, 2024. This downward trend suggests a potential deterioration in the company's ability to meet its short-term obligations solely with its available cash reserves.

It is important to note that a cash ratio below 1 implies that the company does not have enough liquid assets to cover its short-term liabilities entirely. While a decreasing cash ratio may raise concerns about liquidity risk, other financial metrics and considerations should be taken into account to assess the overall financial health and stability of Shutterstock.