Celsius Holdings Inc (CELH)

Based on the provided data, we can analyze the liquidity ratios of Celsius Holdings Inc over the period from December 31, 2020, to December 31, 2024.

1. Current Ratio:
- The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets. A higher current ratio indicates a stronger liquidity position.
- From December 31, 2020, to December 31, 2024, Celsius Holdings Inc's current ratio ranged from 2.82 to 5.69, showing a relatively stable and strong liquidity position over the years.
- The company's current assets are significantly higher than its current liabilities, implying that it can easily meet its short-term obligations.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventories from current assets.
- Celsius Holdings Inc's quick ratio fluctuated between 0.62 and 4.22 during the period, indicating some variability in its ability to meet short-term obligations without relying on inventory.
- While the quick ratio dipped in 2021, it showed a significant improvement in 2022, suggesting enhanced liquidity without inventory dependence.

3. Cash Ratio:
- The cash ratio assesses the company's ability to cover its short-term liabilities with cash and cash equivalents only.
- Celsius Holdings Inc's cash ratio ranged from 0.17 to 3.81, with a notable increase in 2022, indicating a stronger reliance on cash to meet immediate obligations.
- The company had a significant improvement in its cash position in 2022 and maintained relatively stable levels of cash coverage in the following years, demonstrating a prudent approach to managing liquidity.

In conclusion, Celsius Holdings Inc maintained a strong liquidity position over the analyzed period, as indicated by its current, quick, and cash ratios. The company's ability to cover its short-term liabilities improved in certain years, showcasing effective liquidity management strategies.

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Additional liquidity measure

The cash conversion cycle for Celsius Holdings Inc has shown significant fluctuations over the period from December 31, 2020, to December 31, 2024. Starting at 81.38 days in 2020, the cycle increased substantially to 352.79 days by the end of 2021, indicating a potential inefficiency in converting its resources into cash. However, the company made improvements in subsequent years, with the cycle decreasing to 167.71 days in 2022 and further to 150.87 days in 2023. By the end of 2024, the cash conversion cycle stood at 98.16 days, indicating a more efficient management of cash flow and working capital. Overall, the fluctuations in the cash conversion cycle suggest that Celsius Holdings Inc has been actively working on optimizing its working capital management processes over the years.