Shutterstock (SSTK)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	100,490	115,154	314,000	428,574	303,261
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	91,139	67,249	47,707	43,846	47,016
Total current liabilities	US$ in thousands	452,386	383,734	333,784	256,929	245,894
Quick ratio		0.42	0.48	1.08	1.84	1.42

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($100,490K + $—K + $91,139K) ÷ $452,386K
= 0.42

The quick ratio measures a company's ability to cover its short-term liabilities with its most liquid assets. In the case of Shutterstock Inc, the quick ratio has exhibited a declining trend over the past five years, from 1.53 in 2019 to 0.65 in 2023. This indicates a decreasing ability to cover its current liabilities with its quick assets.

A quick ratio below 1.0 may signal potential liquidity issues, as it suggests that the company may not have enough liquid assets to meet its short-term obligations. During the period under review, Shutterstock's quick ratio has consistently been below 1.0, with the lowest point seen in 2023 at 0.65.

The decline in the quick ratio may be attributed to changes in the composition of the company's current assets and liabilities. A decreasing quick ratio could potentially raise concerns among investors and creditors about Shutterstock's liquidity position and ability to meet its short-term financial obligations without having to rely on selling inventory or obtaining external financing.

Further analysis is recommended to assess the underlying factors contributing to the fluctuation in Shutterstock's quick ratio and to determine the company's overall liquidity and financial health.