Shutterstock (SSTK)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	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	303,261	285,396	259,069	240,141
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	245,894	247,858	228,818	232,210
Cash ratio		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	1.23	1.15	1.13	1.03

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($100,490K + $—K) ÷ $452,386K
= 0.22

The cash ratio of Shutterstock Inc has shown some fluctuations over the past eight quarters ranging from 0.30 to 0.97. The formula for calculating the cash ratio is (Cash and Cash Equivalents / Current Liabilities).

In Q1 2022, the cash ratio was notably high at 0.97, indicating that the company had a substantial amount of cash on hand compared to its current liabilities. This could suggest a strong ability to cover short-term obligations using its available cash resources.

However, the cash ratio decreased gradually in the following quarters, reaching a low of 0.30 in Q3 2022. This sharp decline may raise concerns about the company's liquidity position and its ability to meet short-term liabilities solely with its cash holdings.

Subsequently, the cash ratio displayed a fluctuating pattern with values ranging from 0.39 to 0.52 in the subsequent quarters. While these ratios suggest some level of improvement in liquidity compared to Q3 2022, they still indicate a moderate ability to cover short-term obligations with cash reserves.

Overall, the cash ratio trend highlights the importance of monitoring Shutterstock Inc's liquidity position closely to ensure adequate levels of cash to meet its short-term financial obligations effectively.