Shutterstock (SSTK)

Liquidity ratios

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
Current ratio 0.41 0.42 0.56 0.60 0.65 0.64 0.67 0.57 0.56 0.45 0.44 1.12 1.16 1.19 1.71 1.66 1.90 1.84 1.69 1.59
Quick ratio 0.33 0.34 0.40 0.38 0.42 0.38 0.37 0.46 0.48 0.36 0.36 1.00 1.08 1.10 1.63 1.56 1.84 1.76 1.57 1.47
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

Shutterstock's liquidity ratios have shown some fluctuations over the years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has generally been decreasing since March 2022. This trend indicates a potential deterioration in the company's short-term liquidity position.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also exhibited a downward trend since March 2022. This suggests that Shutterstock may be facing difficulties in meeting immediate liabilities without relying on inventory.

Furthermore, the cash ratio, reflecting the proportion of the company's current assets held in cash or cash equivalents, has been on a decreasing trend since March 2023. This declining pattern indicates a potential decrease in Shutterstock's ability to cover its short-term liabilities with readily available cash.

Overall, the declining liquidity ratios of Shutterstock may raise concerns about its ability to meet short-term financial obligations and maintain operational efficiency in the coming periods. Further analysis and monitoring of the company's financial health and liquidity management strategies would be advisable to assess the potential risks associated with its liquidity position.

Additional liquidity measure

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 conversion cycle days 31.75 28.28 33.91 33.54 32.20 31.00 22.43 15.54 24.65 20.27 19.08 16.72 16.82 19.03 21.77 22.07 22.41 24.29 24.64 22.93

The cash conversion cycle is a key financial metric that provides insights into how efficiently a company manages its working capital. It measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Based on the data provided for Shutterstock's cash conversion cycle over the past few quarters, we can observe some trends and fluctuations in the company's working capital management.

In the latest quarter, as of December 31, 2024, the cash conversion cycle stood at 31.75 days. This indicates that the company takes approximately 31.75 days to convert its investments in inventory into cash from sales. A higher number may suggest inefficiencies in managing working capital, potentially tying up funds in inventory for too long.

Looking back at the trend over the previous quarters, we can see fluctuations in the cash conversion cycle. For example, there was a decrease in the cycle from September 30, 2023, to March 31, 2024, but then an increase in the subsequent quarters. Such fluctuations can be influenced by factors such as changes in sales volumes, inventory turnover rates, and payment terms with customers and suppliers.

It is noteworthy that a shorter cash conversion cycle is generally preferable as it indicates a more efficient use of working capital and quicker cash generation. Therefore, it would be beneficial for Shutterstock to focus on optimizing its inventory management, sales processes, and accounts receivable/payable practices to further reduce its cash conversion cycle and improve overall liquidity and financial performance.