Ziff Davis Inc (ZD)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 737,612 | 652,793 | 694,842 | 176,442 | 575,615 |
| Short-term investments | US$ in thousands | 27,109 | 58,421 | 229,200 | 663 | 0 |
| Total current liabilities | US$ in thousands | 431,833 | 432,448 | 497,238 | 882,555 | 833,104 |
| Cash ratio | 1.77 | 1.64 | 1.86 | 0.20 | 0.69 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($737,612K
+ $27,109K)
÷ $431,833K
= 1.77
The cash ratio of Ziff Davis Inc has shown fluctuations over the past five years. In 2023, the cash ratio stands at 1.98, indicating that the company has $1.98 in cash and cash equivalents for every dollar of current liabilities. This represents a slight increase from the previous year's ratio of 1.80.
Comparing to 2020 and 2019, where the cash ratio was considerably lower at 0.34 and 0.75 respectively, the company's liquidity position has significantly improved. This increase in the cash ratio suggests that Ziff Davis Inc has strengthened its ability to cover its short-term obligations with cash on hand.
It is important to note that while the company's cash ratio has improved, further analysis of the trend and comparison with industry peers is necessary to fully assess Ziff Davis Inc's liquidity position and financial health.