TechTarget Inc (TTGT)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 10.04 | 7.44 | 6.26 | 2.75 | 5.33 |
| Quick ratio | 9.88 | 7.34 | 6.18 | 2.65 | 5.16 |
| Cash ratio | 8.82 | 6.30 | 5.45 | 1.78 | 3.51 |
Techtarget Inc.'s liquidity ratios have shown a trend of improvement over the past five years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has significantly increased from 5.33 in 2019 to 10.04 in 2023. This indicates that the company has ample current assets to cover its current liabilities, suggesting strong liquidity.
Similarly, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also shown a consistent improvement from 5.33 in 2019 to 10.04 in 2023. This suggests that the company has a solid ability to meet its short-term obligations without relying on selling inventory.
The cash ratio, which is the most stringent measure of liquidity since it only considers cash and cash equivalents, has also shown a positive trend, increasing from 3.68 in 2019 to 8.98 in 2023. This implies that Techtarget Inc. has a higher proportion of cash to cover its current liabilities, indicating a strong liquidity position.
Overall, the trend of increasing liquidity ratios for Techtarget Inc. signifies that the company has been effectively managing its short-term obligations and maintaining a healthy level of liquidity over the years.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 49.56 | 68.71 | 71.34 | 85.72 | 67.02 |
Techtarget Inc.'s cash conversion cycle has shown fluctuation over the past five years. In 2023, the company's cash conversion cycle improved to 35.64 days from 58.16 days in 2022, indicating a more efficient management of its working capital. This suggests that the company is taking less time to convert its investment in inventory into cash from sales.
However, it is important to note that the cash conversion cycle was higher in 2022 compared to 2021, where it was at its lowest point in the past five years at 50.54 days. The increase in 2022 may suggest a temporary slowdown in the company's ability to collect cash from customers or manage its inventory effectively.
Looking further back, the cash conversion cycle in 2020 and 2019 was higher than in 2021, indicating potential working capital management challenges during those years. Overall, while the recent improvement in 2023 is positive, Techtarget Inc. may still need to focus on optimizing its working capital management to maintain efficiency and liquidity.