TechTarget, Inc. Common Stock (TTGT)

TechTarget, Inc. Common Stock has shown a strong improvement in its liquidity ratios over the years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, increased from 2.75 in 2020 to 10.04 in 2023, indicating a significant increase in liquidity and financial health.

Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also saw a notable improvement from 2.65 in 2020 to 9.88 in 2023. This demonstrates the company's ability to meet its short-term obligations with its most liquid assets.

Additionally, the cash ratio, which indicates the proportion of current liabilities that can be covered by cash and cash equivalents, showed a steady rise from 1.78 in 2020 to 8.82 in 2023. This suggests that the company has a substantial amount of cash on hand to meet its immediate financial obligations.

Overall, the liquidity ratios paint a positive picture of TechTarget, Inc. Common Stock's financial strength and ability to manage its short-term liabilities effectively, providing a cushion against potential financial stress.

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Additional liquidity measure

TechTarget, Inc. Common Stock's cash conversion cycle experienced fluctuations over the years. From December 31, 2020, to December 31, 2021, the cycle decreased from 56.79 days to 51.41 days, indicating an improvement in the company's efficiency in converting its resources into cash. However, by December 31, 2022, the cycle increased to 58.72 days, suggesting potential challenges in managing its working capital effectively.

The data for December 31, 2023, shows a significant negative cash conversion cycle of -25,449.30 days, which appears anomalous and requires further investigation as it implies a potential issue with the data or calculation methodology. By December 31, 2024, the cash conversion cycle is recorded as 0.00 days, indicating that the company is able to convert its investments in inventory and receivables into cash almost immediately.

Overall, the trend in TechTarget's cash conversion cycle demonstrates some variability, with fluctuations that may reflect changes in operational efficiency and working capital management practices. It is important for investors and analysts to further analyze the underlying reasons for these fluctuations to assess the company's financial performance accurately.