Ziff Davis Inc (ZD)
Cash ratio
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 505,880 | 386,122 | 687,234 | 734,779 | 737,612 | 660,624 | 679,090 | 721,502 | 652,793 | 621,917 | 648,290 | 629,030 | 694,842 | 546,467 | 347,857 | 371,971 | 176,442 | 567,930 | 616,820 | 526,554 |
| Short-term investments | US$ in thousands | 0 | 0 | 0 | 16,404 | 27,109 | 29,797 | 35,816 | 39,012 | 58,421 | 54,900 | 72,535 | 238,151 | 229,200 | 0 | 0 | 663 | 663 | 96,575 | — | — |
| Total current liabilities | US$ in thousands | 899,647 | 667,394 | 643,805 | 663,334 | 431,833 | 419,498 | 436,043 | 441,179 | 432,448 | 416,455 | 484,047 | 432,191 | 497,238 | 1,028,400 | 845,019 | 867,534 | 882,555 | 768,913 | 772,181 | 368,681 |
| Cash ratio | 0.56 | 0.58 | 1.07 | 1.13 | 1.77 | 1.65 | 1.64 | 1.72 | 1.64 | 1.63 | 1.49 | 2.01 | 1.86 | 0.53 | 0.41 | 0.43 | 0.20 | 0.86 | 0.80 | 1.43 |
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 measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to pay off current obligations.
Looking at the data provided for Ziff Davis Inc, the cash ratio fluctuated over the period from March 31, 2020, to December 31, 2024. The company's cash ratio was relatively high in the beginning, standing at 1.43 on March 31, 2020, indicating a healthy level of cash reserves compared to its current liabilities. However, the ratio decreased to 0.80 by June 30, 2020, and further declined to 0.20 by December 31, 2020.
Subsequently, there was a trend of gradual improvement in the cash ratio, reaching its lowest point at 0.41 on June 30, 2021. From that point onwards, the cash ratio showed an increasing trend, peaking at 2.01 on March 31, 2022. This significant improvement suggests that the company was able to build up its cash reserves and strengthen its liquidity position during this period.
Despite some fluctuations in the following quarters, the cash ratio generally remained above 1, indicating that Ziff Davis Inc maintained a solid ability to cover its short-term liabilities with its cash holdings. Towards the end of the period on December 31, 2024, the cash ratio stood at 0.56, which was relatively lower compared to the earlier quarters but still above 0.5.
Overall, the cash ratio analysis suggests that Ziff Davis Inc managed its cash resources effectively over the period, with some fluctuations but maintaining a reasonable level of cash reserves to meet its short-term obligations. It is important for the company to continue monitoring and managing its cash position to ensure liquidity and financial stability in the future.