Thryv Holdings Inc (THRY)

Thryv Holdings Inc's liquidity ratios have shown a downward trend over the past four years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, declined from 1.78 in 2020 to 1.01 in 2023. This suggests a potential weakening in the company's short-term liquidity position.

Similarly, the quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, also decreased from 1.78 in 2020 to 1.01 in 2023. This indicates that the company may have a more limited ability to cover its short-term liabilities without relying on inventory.

The cash ratio, which is the most conservative liquidity measure focusing solely on cash and cash equivalents to cover current liabilities, decreased from 0.31 in 2020 to 0.22 in 2023. This decline highlights a decrease in the company's ability to quickly settle its current debts with cash on hand.

Overall, the declining trend in Thryv Holdings Inc's liquidity ratios signals a potential deterioration in the company's ability to meet its short-term financial obligations. It may be important for the company to closely monitor and manage its liquidity position to ensure it can sustain its operations effectively.

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Additional liquidity measure

Thryv Holdings Inc's cash conversion cycle has shown a gradual improvement over the past four years, decreasing from 91.72 days in 2020 to 71.88 days in 2023. This trend indicates that the company has been able to more efficiently convert its inventory into cash during the operating cycle.

A shorter cash conversion cycle suggests that Thryv Holdings Inc has been able to manage its working capital more effectively, potentially resulting in reduced liquidity risks and improved financial performance. The company may be managing its inventory, accounts receivable, and accounts payable in a more efficient manner, leading to quicker cash inflows and outflows.

Overall, the declining trend in Thryv Holdings Inc's cash conversion cycle reflects positive operational management and financial efficiency over the years, which may contribute to enhanced profitability and sustainability in the long run.