TechTarget, Inc. Common Stock (TTGT)

Liquidity ratios

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 10.49 9.35 8.60 10.04 9.27 9.84 8.69 7.44 7.50 6.54 6.91 6.26 2.52 2.93 2.91 2.75 5.04 4.28 4.64 5.33
Quick ratio 10.25 9.19 8.45 9.88 9.13 9.69 8.52 7.34 7.42 6.45 6.82 6.18 2.37 2.85 2.81 2.65 4.77 4.19 4.48 5.16
Cash ratio 9.20 8.16 7.60 8.82 8.01 8.41 7.44 6.30 6.40 5.60 6.04 5.45 1.65 2.09 2.01 1.78 3.43 2.87 2.94 3.51

TechTarget, Inc. Common Stock has shown consistently strong liquidity ratios over the past few years. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has been steadily increasing, reaching a high of 10.04 as of December 31, 2023. This indicates that the company has more than enough current assets to meet its short-term obligations.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also demonstrates a positive trend, peaking at 9.88 as of December 31, 2023. This suggests that even without inventory, TechTarget, Inc. Common Stock remains highly liquid and able to meet its short-term liabilities comfortably.

Additionally, the cash ratio, reflecting the company's ability to pay off its current liabilities with cash and cash equivalents, has shown a consistent increase over the years, reaching 9.20 as of September 30, 2024. This indicates that TechTarget, Inc. Common Stock holds a significant amount of cash relative to its current liabilities, further enhancing its liquidity position.

Overall, based on the current, quick, and cash ratios, it can be inferred that TechTarget, Inc. Common Stock has a robust liquidity position, with ample resources to meet its short-term financial obligations effectively.

Additional liquidity measure

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 39.75 45.24 41.24 37.83 40.70 54.10 51.17 58.72 0.04 38.08 55.89 51.41 54.28 47.88 59.85 56.79 47.38 48.74 44.79 50.52

The cash conversion cycle of TechTarget, Inc. Common Stock has shown fluctuations over the period examined. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From December 2019 to September 2021, the cash conversion cycle ranged from a low of 44.79 days to a high of 59.85 days. This indicates that the company took an average of around 45 to 60 days to convert its investments in inventory and accounts receivable into cash during this period.

Notably, there was a significant improvement in the cash conversion cycle in the second half of 2021, with values dropping to as low as 38.08 days by June 2022. This suggests that the company became more efficient in managing its working capital and converting its resources into cash.

However, by December 2022, the cash conversion cycle increased to 58.72 days, indicating a potential slowdown in cash conversion efficiency. The cycle fluctuated over the next few quarters, but generally remained below the levels seen in 2021.

In summary, while TechTarget, Inc. Common Stock experienced fluctuations in its cash conversion cycle, it made improvements in efficiency during mid-2021 before facing challenges in late 2022. Monitoring the cash conversion cycle can provide insights into the company's operational efficiency and liquidity management.