Shutterstock (SSTK)

Liquidity ratios

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
Current ratio 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 1.53 1.47 1.46 1.38
Quick ratio 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 1.42 1.34 1.33 1.23
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

Shutterstock Inc's liquidity ratios indicate the company's ability to meet its short-term financial obligations. The current ratio, which measures the company's ability to pay off its current liabilities with its current assets, has been quite low and relatively stable over the past eight quarters, ranging from 0.56 to 0.67. This suggests that the company may struggle to cover its short-term obligations with its current assets.

Similarly, the quick ratio, which excludes inventory from current assets, also reflects a weak liquidity position for Shutterstock Inc. The quick ratio has mirrored the trend of the current ratio, indicating that the company may not have sufficient liquid assets to cover immediate liabilities.

Furthermore, the cash ratio, which provides the most conservative measure of liquidity by only considering cash and cash equivalents, has consistently been low, ranging from 0.30 to 0.52. This implies that Shutterstock Inc may rely heavily on non-cash current assets to meet its short-term obligations.

Overall, based on the liquidity ratios, Shutterstock Inc appears to face challenges in ensuring sufficient liquidity to cover its short-term liabilities. Management may need to closely monitor and improve the company's cash management and working capital practices to enhance its liquidity position and financial stability.

Additional liquidity measure

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 conversion cycle days 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 22.58 23.83 22.81 22.97

The cash conversion cycle of Shutterstock Inc has shown fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle was 28.61 days, slightly higher than the previous quarter's 28.06 days. This indicates that it took the company approximately 28.61 days to convert its investments in inventory and other resources into cash from sales during the fourth quarter of 2023.

Looking back further, in Q2 2023, the company had a lower cash conversion cycle of 19.90 days compared to Q1 2023, where it was at 12.10 days. The significant increase in Q2 2023 from the previous quarter could suggest potential challenges in managing inventory or collecting receivables efficiently.

Comparing the fourth quarter of 2023 with the same period the previous year, there is a noticeable increase in the cash conversion cycle from 21.31 days in Q4 2022 to 28.61 days in Q4 2023. This indicates a potential lengthening in the time it took for Shutterstock Inc to convert its investments into cash during the most recent quarter.

Overall, fluctuations in the cash conversion cycle can provide insights into the company's operational efficiency, inventory management, and collection policies. Monitoring changes in this metric over time can help in assessing the company's effectiveness in managing working capital and optimizing its cash flow conversion process.