Columbia Sportswear Company (COLM)

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 2.62 3.22 3.39 4.13 3.38 3.58 3.41 3.49 2.89 2.81 2.90 3.22 3.11 3.25 3.31 3.80 3.36 3.30 2.99 2.80
Quick ratio 1.06 0.66 1.31 1.76 1.28 0.41 0.54 0.81 0.58 0.23 0.67 1.07 1.31 1.02 1.45 1.84 1.43 0.63 0.89 1.16
Cash ratio 1.06 0.66 1.31 1.76 1.28 0.41 0.54 0.81 0.58 0.23 0.67 1.07 1.31 1.02 1.45 1.84 1.43 0.63 0.89 1.16

Columbia Sportswear Company's liquidity ratios indicate a strong ability to meet its short-term obligations. The current ratio has shown a consistently increasing trend over the past few years, reaching 4.13 as of March 31, 2024, which signifies that the company has $4.13 in current assets for every $1 of current liabilities. This indicates a healthy balance between assets that can be converted into cash within a year and short-term obligations.

The quick ratio, which excludes inventory from current assets, also demonstrates a satisfactory liquidity position for Columbia Sportswear. Although there was some fluctuation in the quick ratio over the years, it generally trended upwards, reaching 1.76 as of March 31, 2024. This indicates that the company has $1.76 in liquid assets (excluding inventory) available to cover each dollar of current liabilities, providing a more conservative measure of liquidity.

Furthermore, the cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, also shows a favorable position for Columbia Sportswear. With the cash ratio rising to 1.76 as of March 31, 2024, the company appears to have sufficient cash on hand to cover its short-term obligations, providing a strong buffer in case of any unexpected liquidity needs.

Overall, based on the current, quick, and cash ratios, Columbia Sportswear Company demonstrates strong liquidity and the ability to meet its short-term financial obligations comfortably.

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 149.80 174.42 175.63 128.92 155.01 178.20 235.20 195.48 214.15 225.19 217.90 163.71 155.60 184.39 177.66 149.28 158.99 216.46 209.89 139.93

The cash conversion cycle of Columbia Sportswear Company has shown fluctuations over the reporting periods. The trend indicates that the company's efficiency in converting its resources into cash has varied.

From March 31, 2020, to September 30, 2022, there was a general upward trend in the cash conversion cycle, peaking at 225.19 days in September 30, 2022. This suggests that the company took longer to convert its investments in inventory into cash during this period.

However, from December 31, 2022, to December 31, 2024, there was a declining trend in the cash conversion cycle, with the cycle decreasing to 149.80 days by the end of December 31, 2024. This improvement indicates that the company was able to enhance its efficiency in managing inventory and collecting receivables, leading to a shorter cash conversion cycle.

Overall, analyzing the cash conversion cycle provides insights into Columbia Sportswear Company's management of working capital and liquidity. A shorter cash conversion cycle indicates better efficiency in managing cash flows, inventory, and receivables, while a longer cycle may suggest potential challenges in working capital management.