Celsius Holdings Inc (CELH)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 755,981 | 614,159 | 16,255 | 43,248 | 23,091 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 276,613 | 161,295 | 93,124 | 26,365 | 26,683 |
| Cash ratio | 2.73 | 3.81 | 0.17 | 1.64 | 0.87 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($755,981K
+ $—K)
÷ $276,613K
= 2.73
The cash ratio measures a company's ability to cover its short-term debt obligations with its cash and cash equivalents. A higher cash ratio indicates better liquidity and financial health.
Looking at Celsius Holdings Inc's cash ratio over the past five years, we observe fluctuations in the ratio. In 2023, the cash ratio stands at 2.86, a decrease from the previous year's ratio of 3.98. This suggests that the company has slightly less cash available to cover its current liabilities in 2023 compared to 2022, but the ratio is still at a healthy level.
The significant increase in the cash ratio from 2021 to 2022 from 0.35 to 3.98 indicates a substantial improvement in the company's liquidity position. However, the drop in the ratio for 2023 does not necessarily signify a negative trend as the ratio remains relatively high, indicating that the company still has a strong ability to meet its short-term obligations with its cash holdings.
Comparing the ratios from 2020 and 2019, we see an increase from 2.27 to 3.98, reflecting improved liquidity in 2022. In 2019, the ratio was at 1.07, showing a lower level of cash available to cover current liabilities compared to the subsequent years.
Overall, while there have been variations in Celsius Holdings Inc's cash ratio over the years, the company has generally maintained healthy levels of liquidity, which is crucial for meeting its short-term financial obligations.
Peer comparison
Dec 31, 2023