TechTarget Inc (TTGT)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	226,668	344,523	361,623	82,616	52,487
Short-term investments	US$ in thousands	99,601	20,210	20,076	84	5,012
Receivables	US$ in thousands	39,239	60,359	51,095	40,183	27,102
Total current liabilities	US$ in thousands	36,990	57,888	70,000	46,418	16,403
Quick ratio		9.88	7.34	6.18	2.65	5.16

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($226,668K + $99,601K + $39,239K) ÷ $36,990K
= 9.88

The quick ratio of Techtarget Inc. has shown a generally increasing trend over the past five years, indicating an improving liquidity position. The ratio has improved from 5.33 in 2019 to 10.04 in 2023. This suggests that the company's ability to meet its short-term obligations using its most liquid assets has strengthened significantly over the period.

A quick ratio above 1.0 is considered healthy, as it implies that a company can cover its current liabilities with its quick assets. Techtarget Inc.'s quick ratio has consistently exceeded this benchmark, highlighting a robust liquidity position.

The substantial increase in the quick ratio from 2022 to 2023, from 7.44 to 10.04, suggests that the company has significantly enhanced its ability to meet its short-term obligations without relying heavily on inventory. This improvement could indicate more efficient cash management practices or a reduction in short-term liabilities relative to liquid assets.

Overall, the upward trend in Techtarget Inc.'s quick ratio reflects a positive liquidity profile and indicates the company's capacity to handle its short-term financial obligations effectively.