Shutterstock (SSTK)

Quick ratio

		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	US$ in thousands	111,251	131,393	74,871	71,811	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
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	95,225	92,169	97,442	93,993	91,139	85,406	61,715	48,303	67,249	52,713	48,816	44,774	47,707	45,323	49,756	49,261	43,846	48,225	48,744	45,216
Total current liabilities	US$ in thousands	625,286	663,365	432,331	432,977	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
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

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 of Shutterstock has shown fluctuations over the analyzed period, ranging from a high of 1.84 on December 31, 2020, to a low of 0.33 on December 31, 2024. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

In general, a quick ratio above 1 indicates that a company has an adequate level of liquid assets to cover its short-term liabilities. It is noteworthy that Shutterstock generally maintained a quick ratio above 1 during the early part of the analysis period, indicating a healthy liquidity position. However, there was a significant decline in the quick ratio from September 30, 2021, to December 31, 2024, reaching a low point of 0.33. This downward trend may raise concerns about the company's ability to meet its short-term obligations without relying on selling inventory.

The decreasing trend in the quick ratio suggests that over time, Shutterstock may have experienced challenges in managing its liquidity position efficiently or may have invested more in less liquid assets. It is important for stakeholders to monitor this ratio closely to ensure the company's ongoing ability to meet its short-term financial obligations.