Ziff Davis Inc (ZD)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 505,880 | 737,612 | 652,793 | 694,842 | 176,442 |
| Short-term investments | US$ in thousands | 0 | 27,109 | 58,421 | 229,200 | 663 |
| Total current liabilities | US$ in thousands | 899,647 | 431,833 | 432,448 | 497,238 | 882,555 |
| Cash ratio | 0.56 | 1.77 | 1.64 | 1.86 | 0.20 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($505,880K
+ $0K)
÷ $899,647K
= 0.56
The cash ratio of Ziff Davis Inc has shown fluctuations over the years. As of December 31, 2020, the cash ratio was at a relatively low level of 0.20, indicating that the company had limited cash reserves compared to its current liabilities. However, by December 31, 2021, the cash ratio improved significantly to 1.86, suggesting a stronger liquidity position with more cash on hand to cover short-term obligations.
Subsequently, the cash ratio decreased slightly to 1.64 by December 31, 2022, indicating a minor decline in liquidity but still maintaining a healthy ratio above 1. This trend continued into December 31, 2023, where the cash ratio increased to 1.77, showing a recovery in liquidity levels.
However, by December 31, 2024, the cash ratio dropped to 0.56, signaling a decline in the company's ability to cover its short-term liabilities with its cash reserves. This decrease may raise concerns about Ziff Davis Inc's liquidity position and its ability to meet immediate financial obligations using available cash.
Overall, the fluctuating cash ratio of Ziff Davis Inc over the years highlights the importance of monitoring and managing the company's cash reserves to ensure sufficient liquidity to meet its short-term financial commitments.