Ziff Davis Inc (ZD)

Liquidity ratios

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 2.76 2.54 2.47 2.51 2.51 2.34 2.12 2.76 2.62 0.86 0.78 0.78 0.71 1.05 1.10 2.12 1.06 0.84 0.94 1.25
Quick ratio 2.55 2.34 2.30 2.35 2.35 2.18 1.99 2.62 2.49 0.79 0.71 0.71 0.57 1.11 1.04 1.98 1.01 0.72 0.85 1.16
Cash ratio 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 0.69 0.22 0.40 0.65

In analyzing the liquidity ratios of Ziff Davis Inc based on the provided data, we can observe the following trends:

1. Current Ratio: The current ratio measures the company's ability to meet its short-term obligations with its current assets. Ziff Davis Inc's current ratio has been consistently above 2.0 for the past eight quarters, indicating a strong ability to cover its current liabilities with its current assets.

2. Quick Ratio: The quick ratio provides a more stringent measure of liquidity by excluding inventory from current assets. Ziff Davis Inc's quick ratio mirrors its current ratio across all quarters, indicating that the company has a sufficient level of highly liquid assets to cover its short-term liabilities.

3. Cash Ratio: The cash ratio focuses solely on the most liquid assets, cash and cash equivalents, compared to current liabilities. Ziff Davis Inc's cash ratio has varied slightly over the quarters but has generally been above 1.5, suggesting that the company holds an adequate level of cash to meet its immediate payment obligations.

Overall, based on the liquidity ratios, Ziff Davis Inc appears to have a strong liquidity position with consistent current, quick, and cash ratios above industry norms. This indicates that the company is well-equipped to handle its short-term financial obligations and likely has the flexibility to invest in future opportunities or withstand any unexpected financial challenges.

Additional liquidity measure

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days -137.66 -156.21 -159.97 -195.92 -145.56 60.44 62.71 67.77 -172.72 70.36 69.38 72.58 102.56 59.62 54.94 56.47 69.68 56.69 50.40 52.59

The cash conversion cycle (CCC) of Ziff Davis Inc has shown fluctuations over the past eight quarters. In Q4 2023, the CCC improved to -137.66 days compared to the previous quarter of Q3 2023 at -156.21 days. This indicates that the company was able to convert its inventory and receivables into cash more efficiently in the most recent quarter. However, the CCC in Q4 2023 is still lower than in Q4 2022 at -145.56 days, suggesting a longer cash conversion cycle year over year.

In general, a negative CCC is favorable as it indicates that Ziff Davis Inc is able to collect cash from customers before having to pay its suppliers. The negative trend in CCC from Q1 2023 to Q4 2023 suggests an improvement in working capital management efficiency. Conversely, the positive CCC in previous quarters from Q2 2022 to Q3 2022 indicates that the company took longer to convert its resources into cash during that period.

Overall, Ziff Davis Inc should continue monitoring its cash conversion cycle to ensure that it maintains an optimal balance between collecting cash from customers, managing inventory, and paying suppliers efficiently.