Shutterstock (SSTK)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	111,251	100,490	115,154	314,000	428,574
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	95,225	91,139	67,249	47,707	43,846
Total current liabilities	US$ in thousands	625,286	452,386	383,734	333,784	256,929
Quick ratio		0.33	0.42	0.48	1.08	1.84

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($111,251K + $—K + $95,225K) ÷ $625,286K
= 0.33

The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1:1 or higher is generally considered healthy as it indicates that the company has enough liquid assets to cover its short-term liabilities.

Based on the provided data for Shutterstock:
- As of December 31, 2020, the quick ratio was 1.84, indicating a strong ability to cover short-term liabilities with liquid assets.
- By December 31, 2021, the quick ratio decreased to 1.08, still above the ideal threshold but showing a slight decline.
- The quick ratio further declined to 0.48 by December 31, 2022, and significantly dropped to 0.42 by December 31, 2023, suggesting a potential strain on liquidity and ability to meet short-term obligations.
- The trend continued to worsen as of December 31, 2024, with the quick ratio falling to 0.33, signaling a significant deterioration in the company's ability to meet its short-term liabilities with its current liquid assets.

Overall, the decreasing trend in Shutterstock's quick ratio from 2020 to 2024 raises concerns about the company's liquidity position and its ability to fulfill its short-term financial obligations. Investors and stakeholders may want to closely monitor this ratio to ensure that the company is able to maintain sufficient liquidity levels in the future.