Ziff Davis Inc (ZD)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 337,703 | 304,739 | 316,342 | 325,619 | 261,928 |
| Total current liabilities | US$ in thousands | 431,833 | 432,448 | 497,238 | 882,555 | 833,104 |
| Quick ratio | 2.55 | 2.35 | 2.49 | 0.57 | 1.01 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($737,612K
+ $27,109K
+ $337,703K)
÷ $431,833K
= 2.55
The quick ratio of Ziff Davis Inc has shown varying trends over the past five years. In 2023, the quick ratio improved to 2.76 from 2.51 in 2022, indicating an increase in the company's ability to cover its short-term obligations with its most liquid assets. This improvement suggests stronger liquidity and financial health compared to the previous year.
Looking further back, the quick ratio was relatively stable in 2021 at 2.62, showcasing a consistent ability to meet short-term financial obligations. However, there was a significant decrease in 2020, with the quick ratio dropping to 0.71, indicating a potential liquidity issue or a challenge in meeting short-term financial demands.
The quick ratio then rebounded in 2019 to 1.06, showing an improvement in liquidity compared to 2020 but still indicating a lower ability to cover short-term liabilities compared to the more recent years.
Overall, the increasing trend in the quick ratio from 2020 to 2023 suggests that Ziff Davis Inc has enhanced its ability to meet short-term financial obligations with its liquid assets, which is a positive indicator of financial stability and liquidity management. However, further analysis and comparison with industry benchmarks may be necessary to provide a more comprehensive assessment.