Celsius Holdings Inc (CELH)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.93 | 4.42 | 3.48 | 3.53 |
| Quick ratio | 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 | 1.20 | 3.22 | 1.94 | 1.75 |
| Cash ratio | 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 | 0.87 | 1.85 | 0.52 | 0.30 |
Celsius Holdings Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio, which compares current assets to current liabilities, has shown a general upward trend over the quarters, reaching a high of 5.69 in Q4 2022. This suggests an improving ability to cover short-term liabilities with current assets.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown an increasing trend, peaking at 4.38 in Q4 2022. This indicates a strong ability to meet short-term obligations without relying on inventory sales.
The cash ratio, which is the most conservative liquidity measure focusing solely on cash and cash equivalents, has shown fluctuations but generally exhibited an upward trend over the quarters. The ratio reached its highest point of 3.98 in Q4 2022, suggesting a strengthening ability to cover short-term liabilities with cash on hand.
Overall, Celsius Holdings Inc's liquidity ratios demonstrate a solid liquidity position, with improving trends over the quarters. The company seems well-equipped to meet its short-term financial obligations and has shown a prudent management of its liquidity resources.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 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 | 86.22 | 118.48 | 141.30 | 175.06 |
The cash conversion cycle of Celsius Holdings Inc has shown fluctuations over the past eight quarters. The company's cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, ranged from 150.23 days to 273.17 days during this period.
In the latest quarter, Q4 2023, the cash conversion cycle decreased to 150.23 days, indicating an improvement in the efficiency of the company's working capital management compared to the previous quarter. This reduction suggests that Celsius Holdings Inc was able to turn its inventory into cash more quickly or collect payments from customers at a faster rate.
However, looking at the trend over the past eight quarters, the cash conversion cycle has been somewhat volatile, with peaks and troughs observed. The highest cash conversion cycle of 273.17 days was recorded in Q1 2022, indicating that the company took a longer time to convert its investments into cash during that period.
Overall, the company should aim to consistently reduce its cash conversion cycle to improve its working capital efficiency and enhance cash flow management. Analyzing the factors contributing to the fluctuations in the cash conversion cycle can help Celsius Holdings Inc identify areas for improvement and implement strategies to optimize its working capital performance.