Columbia Sportswear Company (COLM)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	350,319	430,241	763,404	763,404	686,009
Short-term investments	US$ in thousands	414,185	722	131,145	1,224	1,668
Total current liabilities	US$ in thousands	596,627	738,718	680,390	552,622	630,915
Cash ratio		1.28	0.58	1.31	1.38	1.09

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($350,319K + $414,185K) ÷ $596,627K
= 1.28

The cash ratio of Columbia Sportswear Co. has fluctuated over the past five years, ranging from 0.76 to 1.53. The cash ratio measures the company's ability to cover its short-term obligations using only cash and cash equivalents. A high cash ratio indicates a stronger ability to meet immediate financial obligations without relying on external sources of funding.

In 2020, the cash ratio was 1.53, indicating that the company had a higher level of cash compared to its current liabilities. This suggests a strong liquidity position. However, in 2022, the cash ratio decreased to 0.76, which may raise concerns about the company's ability to cover short-term obligations solely with cash and cash equivalents.

While the cash ratio increased to 1.42 in 2023, it is still lower than the ratio in 2020. This could indicate an improvement in the company's liquidity position compared to 2022 but not as strong as in 2020.

Overall, the trend in the cash ratio of Columbia Sportswear Co. shows some fluctuation, indicating varying levels of liquidity over the past five years. It is important for investors and stakeholders to monitor this ratio to assess the company's ability to meet its short-term financial obligations.