Columbia Sportswear Company (COLM)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,008,580 | 2,014,680 | 2,136,940 | 2,114,040 | 1,855,620 |
| Total current liabilities | US$ in thousands | 766,545 | 596,627 | 738,718 | 680,390 | 552,622 |
| Current ratio | 2.62 | 3.38 | 2.89 | 3.11 | 3.36 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,008,580K ÷ $766,545K
= 2.62
The current ratio of Columbia Sportswear Company has shown a fluctuating trend over the past five years. As of December 31, 2020, the current ratio stood at 3.36, indicating a strong liquidity position with more than sufficient current assets to cover current liabilities. However, this ratio decreased to 3.11 by the end of 2021 and further to 2.89 by the end of 2022, suggesting a slight decline in short-term solvency.
Interestingly, the current ratio rebounded significantly to 3.38 as of December 31, 2023, surpassing the initial ratio in 2020. This improvement indicates a healthier liquidity position with ample current assets to meet near-term obligations. However, by the end of 2024, the current ratio decreased to 2.62, signaling a potential strain on short-term liquidity compared to the previous year.
Overall, while the current ratio has exhibited fluctuations over the years, Columbia Sportswear Company has generally maintained a strong liquidity position, ensuring the ability to fulfill short-term financial obligations with ease. It is important for the company to monitor this ratio closely to ensure efficient management of current assets and liabilities in the future.
Peer comparison
Dec 31, 2024