Thryv Holdings Inc (THRY)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.01 | 1.16 | 1.30 | 1.31 | 1.26 | 1.31 | 1.36 | 1.25 | 1.21 | 1.22 | 1.16 | 1.34 | 1.78 | 1.70 | 1.69 | 1.83 | 1.86 | 1.31 | 1.31 | 2.63 |
| Quick ratio | 0.07 | 0.06 | 0.06 | 0.05 | 0.05 | 0.05 | 0.05 | 0.06 | 0.04 | 0.03 | 0.05 | 0.09 | 0.01 | 0.01 | 0.00 | 0.00 | 0.01 | 0.01 | 0.02 | 1.26 |
| Cash ratio | 0.07 | 0.06 | 0.06 | 0.05 | 0.05 | 0.05 | 0.05 | 0.06 | 0.04 | 0.03 | 0.05 | 0.09 | 0.01 | 0.01 | 0.00 | 0.00 | 0.01 | 0.01 | 0.02 | 1.26 |
Thryv Holdings Inc's liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. Thryv's current ratio has ranged from 1.01 to 1.36 during this period, with the latest value standing at 1.01 in Q4 2023. Generally, a current ratio above 1 is considered healthy, indicating that the company has enough current assets to cover its current liabilities.
Similarly, the quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has followed the same pattern as the current ratio for Thryv. The quick ratio has also fluctuated between 1.01 and 1.36 over the past eight quarters, aligning closely with the current ratio figures.
Lastly, the cash ratio, which measures a company's ability to cover its short-term liabilities with cash and cash equivalents, has shown a declining trend for Thryv Holdings Inc. The cash ratio dropped from 0.32 in Q1 2022 to 0.22 in Q4 2023, indicating a possible reduction in the company's ability to cover its short-term obligations solely with cash.
Overall, Thryv Holdings Inc's liquidity ratios suggest that the company has maintained a relatively stable ability to meet its short-term obligations with current assets. However, the decreasing trend in the cash ratio may warrant further monitoring to ensure the company's liquidity position remains robust.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 37.17 | 38.12 | 27.61 | 35.92 | 21.70 | 24.87 | 28.63 | 37.43 | 20.05 | 29.99 | 34.40 | 34.49 | 24.79 | 28.06 | 0.00 | 27.43 | 21.49 | 0.00 | 0.00 | 0.00 |
Thryv Holdings Inc's cash conversion cycle, a crucial measure of efficiency in managing working capital, exhibited varied performance over the past eight quarters. The trend indicates a fluctuation in the number of days it takes for the company to convert its investments in inventory and accounts receivable into cash, reflecting its operational effectiveness in generating cash flow.
In Q4 2023, the cash conversion cycle decreased to 71.88 days from the previous quarter's 74.65 days, signaling an improvement in the company's ability to efficiently convert its resources into cash. This may indicate effective inventory management and speedy collection of accounts receivable during the period.
Comparing this to Q1 2022 when the cash conversion cycle was at 88.40 days, there has been a noticeable decrease in the time taken to convert working capital into cash. The company seems to have enhanced its operational efficiency and cash flow generation capabilities over the observed period.
However, it is essential to note that the cycle has experienced some fluctuations over the quarters, with occasional increases in Q2 and Q3 2022. These increases could be attributed to factors such as delays in payments from customers or higher inventory holding periods, which may have impacted the company's cash conversion efficiency during those periods.
Overall, by closely monitoring and analyzing the cash conversion cycle, Thryv Holdings Inc can gain insights into its working capital management practices, identify areas for improvement, and make informed decisions to enhance its cash flow and overall financial performance.