Columbia Sportswear Company (COLM)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	2,014,680	2,136,940	2,114,040	1,855,620	1,875,750
Total current liabilities	US$ in thousands	596,627	738,718	680,390	552,622	630,915
Current ratio		3.38	2.89	3.11	3.36	2.97

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,014,680K ÷ $596,627K
= 3.38

The current ratio measures a company's ability to cover its short-term liabilities with its short-term assets. A higher current ratio indicates a stronger liquidity position.

Columbia Sportswear Co.'s current ratio has fluctuated over the past five years, ranging from 2.89 to 3.38. The ratio peaked at 3.38 in 2023, suggesting an increase in the company's ability to meet its short-term obligations using its current assets. This indicates a healthy liquidity position for the company in that year.

It is important to note that the current ratio of Columbia Sportswear Co. generally remains above 2.5 in the past five years, which indicates that the company has a comfortable margin to cover its short-term liabilities with its current assets. However, the decreasing trend observed in 2022 followed by an increase in 2023 warrants further monitoring to assess the company's ongoing liquidity management.

Overall, based on the current ratio trend, Columbia Sportswear Co. has displayed a satisfactory ability to meet its short-term obligations with its current assets, providing a favorable liquidity position for the company.