Thryv Holdings Inc (THRY)

Thryv Holdings Inc's liquidity ratios provide insights into its short-term financial health and ability to meet its obligations. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown some fluctuations over the years. It decreased from 1.78 in 2020 to 1.01 in 2024, indicating a potential weakening in the company's ability to meet its short-term obligations with its current assets.

The quick ratio, also known as the acid-test ratio, provides a more stringent assessment of liquidity by excluding inventory from current assets. Thryv Holdings Inc's quick ratio has remained consistently low over the years, ranging from 0.01 to 0.07. This suggests that the company may have difficulties meeting its immediate short-term liabilities with its most liquid assets.

The cash ratio, which measures the proportion of cash and cash equivalents to current liabilities, has also followed a similar trend to the quick ratio, remaining low at 0.01 to 0.07. This indicates that Thryv Holdings Inc may have limited cash resources relative to its short-term obligations.

Overall, Thryv Holdings Inc's liquidity ratios suggest that the company may face challenges in meeting its short-term financial obligations, especially when considering its limited quick assets and cash resources. It may be important for the company to closely monitor its liquidity position and potentially take measures to improve its liquidity management in order to enhance its financial stability.

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Additional liquidity measure

Thryv Holdings Inc's cash conversion cycle has exhibited fluctuations over the past five years. In 2024, the company's cash conversion cycle was 0.00 days, which indicates the company was able to effectively manage its cash flow and convert its resources into cash without any delays. This suggests efficient working capital management and strong liquidity.

In contrast, the cash conversion cycle was 37.17 days in 2023, indicating that the company took longer to convert its investments in inventory and accounts receivable into cash during that period. This could be a signal of potential inefficiencies in managing working capital or operational challenges that delayed the conversion process.

Comparing the figures, the cash conversion cycle was 21.70 days in 2022, 20.05 days in 2021, and 26.05 days in 2020. These values suggest a relatively stable trend in the efficiency of Thryv Holdings Inc's cash conversion cycle over the years, with minor fluctuations. Overall, it is important for the company to consistently focus on optimizing its cash conversion cycle to enhance cash flow and operational efficiency.