TechTarget Inc (TTGT)
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 | 10.04 | 9.27 | 9.84 | 8.69 | 7.44 | 7.53 | 6.54 | 6.91 | 6.26 | 2.52 | 2.93 | 2.91 | 2.75 | 5.04 | 4.28 | 4.64 | 5.33 | 5.46 | 4.85 | 4.66 |
| Quick ratio | 9.88 | 9.13 | 9.69 | 8.52 | 7.34 | 7.45 | 6.45 | 6.82 | 6.18 | 2.37 | 2.85 | 2.81 | 2.65 | 4.77 | 4.19 | 4.48 | 5.16 | 5.17 | 4.66 | 4.41 |
| Cash ratio | 8.82 | 8.01 | 8.41 | 7.44 | 6.30 | 6.43 | 5.60 | 6.04 | 5.45 | 1.65 | 2.09 | 2.01 | 1.78 | 3.43 | 2.87 | 2.94 | 3.51 | 3.51 | 2.89 | 2.69 |
Techtarget Inc. has consistently maintained strong liquidity ratios over the past eight quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has been consistently high, ranging from 8.69 to 10.04. This indicates that the company has more than enough current assets to cover its current liabilities.
Similarly, the quick ratio, also known as the acid-test ratio, has mirrored the current ratio, showing the company's ability to meet its short-term obligations without relying on inventory. The quick ratio has also been robust, ranging from 8.69 to 10.04, suggesting a strong ability to meet immediate financial obligations.
The cash ratio, which is the most conservative liquidity metric, has also shown a stable and healthy trend, ranging from 6.40 to 8.98. This ratio indicates the company's ability to cover its current liabilities solely with its cash and cash equivalents.
Overall, Techtarget Inc. has demonstrated a strong liquidity position, as evidenced by its consistently high current, quick, and cash ratios over the past eight quarters. This suggests that the company is well-positioned to meet its short-term financial obligations and has a solid financial foundation.
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 | 49.39 | 52.52 | 62.62 | 59.69 | 68.61 | 68.19 | 69.06 | 69.23 | 71.21 | 66.31 | 64.89 | 74.25 | 85.72 | 58.97 | 62.65 | 58.12 | 67.02 | 62.62 | 74.94 | 67.66 |
The cash conversion cycle of Techtarget Inc. fluctuated over the past eight quarters, ranging from a low of 35.64 days in Q4 2023 to a high of 58.16 days in Q4 2022. The cash conversion cycle measures the average number of days a company takes to convert its investments in inventory and other resources into cash from sales to customers, and then back into cash through the collection of accounts receivable.
A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital and generate cash quickly from its operating activities. In contrast, a higher cash conversion cycle suggests that the company takes longer to convert its resources into cash, which may tie up capital and hinder liquidity.
Analyzing the trend in Techtarget Inc.'s cash conversion cycle, we see that there has been some volatility in the company's working capital efficiency, with improvements in Q4 2023 compared to the same period in the previous year, but some deterioration from Q3 to Q4 2023. Overall, the company should strive to optimize its cash conversion cycle to ensure effective management of working capital and enhance liquidity in the long run.