Celsius Holdings Inc (CELH)

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 3.62 4.71 4.43 4.17 4.36 3.62 3.98 5.18 5.69 3.79 2.87 2.67 2.82 2.70 3.78 2.90 3.53 3.16 2.06 1.94
Quick ratio 3.17 3.85 3.73 3.43 3.41 2.92 3.28 4.02 4.22 2.62 1.22 0.93 0.62 1.15 2.19 1.50 2.28 2.45 1.13 1.06
Cash ratio 2.44 3.12 2.89 2.79 2.73 2.27 2.53 3.11 3.81 2.18 0.57 0.23 0.17 0.66 1.54 0.82 1.64 1.81 0.67 0.65

Celsius Holdings Inc's liquidity ratios show a generally positive trend over the years, indicating improved short-term financial health and ability to meet obligations.

The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has shown consistent improvement from 1.94 in March 2020 to 4.36 in December 2023, before slightly declining to 3.62 in December 2024. This indicates a strong ability to meet short-term obligations and suggests improved liquidity.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also exhibits an upward trajectory, increasing from 1.06 in March 2020 to 3.17 in December 2024. This implies that the company has ample liquid assets to cover short-term liabilities without relying on inventory sales, showcasing a healthy liquidity position.

Additionally, the cash ratio, which measures the company's ability to cover current liabilities with cash and cash equivalents, has shown a significant improvement from 0.65 in March 2020 to 2.44 in December 2024. This indicates that Celsius Holdings Inc has a strong cash position to meet immediate obligations, reflecting sound financial stability.

Overall, the trend in liquidity ratios for Celsius Holdings Inc demonstrates a strengthened ability to cover short-term liabilities with liquid assets and cash reserves, suggesting a solid financial position and efficient management of working capital.

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 99.77 143.89 130.58 132.86 150.87 189.80 183.87 194.05 167.71 208.59 221.91 278.53 352.79 277.55 223.78 143.22 81.38 143.59 142.18 120.38

The cash conversion cycle of Celsius Holdings Inc has shown fluctuations over the analyzed periods, indicating potential changes in the company's operating efficiency and liquidity management.

Starting at 120.38 days on March 31, 2020, the cash conversion cycle increased to its peak of 352.79 days on December 31, 2021. This significant jump suggests potential issues in managing cash flows, inventory, and receivables, leading to a longer cycle.

However, from December 31, 2021 onwards, there was a notable improvement in the cash conversion cycle, consistently decreasing to 99.77 days by December 31, 2024. This reduction indicates enhanced efficiency in converting inventory into cash, collecting receivables, and managing payables.

It is crucial for Celsius Holdings Inc to monitor and manage its cash conversion cycle effectively to ensure optimal working capital utilization and sustainable operations. Regular evaluation and adjustment of processes impacting the cycle can help the company maintain a healthy liquidity position and operational performance in the long run.