Ziff Davis Inc (ZD)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.41 | 1.42 | 1.91 | 1.95 | 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 |
| Quick ratio | 1.30 | 1.28 | 1.77 | 1.81 | 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 |
| 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 |
Ziff Davis Inc's liquidity ratios show fluctuations over the period of analysis. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, improved from a low of 0.71 on December 31, 2020, to a high of 2.76 on March 31, 2022. It remained relatively stable above 2 from December 31, 2021, to March 31, 2024, indicating a strong ability to meet short-term obligations.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, displayed a similar trend. It increased from 0.57 on December 31, 2020, to 2.55 on December 31, 2023, and then declined slightly to 1.30 on December 31, 2024. This ratio also consistently stayed above 1, reflecting a healthy liquidity position throughout the period.
The cash ratio, focusing solely on the most liquid assets (cash and equivalents) to current liabilities, varied from 0.20 on December 31, 2020, to 1.77 on December 31, 2023. It then decreased to 0.56 by December 31, 2024. This ratio showed some volatility but generally demonstrated an improvement in the company's ability to cover its short-term obligations with cash resources.
Overall, Ziff Davis Inc's liquidity ratios, including the current ratio, quick ratio, and cash ratio, indicate that the company generally maintained a strong liquidity position over the period under consideration. It was able to meet its short-term financial commitments and had adequate liquid assets to support its operations.
Additional liquidity measure
| 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 conversion cycle | days | -127.38 | -547.81 | -538.06 | -542.39 | -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 |
The cash conversion cycle is an important metric that indicates the efficiency of a company's operations in managing its cash flow. It reflects the time taken by a company to convert its investments in inventory and other resources into cash from sales.
Analyzing the data provided for Ziff Davis Inc, we can see fluctuations in the cash conversion cycle over time. The cycle started at 56.47 days on March 31, 2020, and generally remained within a reasonable range until December 31, 2021. However, from March 31, 2022, there was a drastic decrease in the cycle to negative values, indicating that the company was able to convert its investments into cash at a faster rate than its sales cycle.
The negative values of the cash conversion cycle from March 31, 2022, to December 31, 2024, suggest that Ziff Davis Inc was operating very efficiently in terms of cash flow management during this period. Negative values indicate that the company was able to receive cash from customers before paying its suppliers, resulting in a shortening of the cash conversion cycle, which is considered favorable for liquidity and financial stability.
It is essential to further investigate the reasons behind the significant decrease in the cash conversion cycle to understand if it was due to improved operational efficiency, changes in the company's payment terms, or other factors. Overall, the data indicates that Ziff Davis Inc experienced a dramatic improvement in cash conversion efficiency during the latter half of the period under review.