Columbia Sportswear Company (COLM)

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	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	2.97	3.04	2.88	3.41
Quick ratio	1.99	1.71	1.16	1.63	1.32	1.09	1.15	1.78	2.03	1.86	1.94	2.55	2.20	1.59	1.29	1.67	1.86	1.59	1.39	2.18
Cash ratio	1.28	0.41	0.54	0.81	0.58	0.23	0.67	1.07	1.31	1.02	1.45	1.84	1.38	0.63	0.89	1.16	1.09	0.43	0.91	1.47

Columbia Sportswear Co.'s liquidity ratios show a strong financial position over the past eight quarters. The current ratio has consistently been above 3, indicating that the company has more than enough current assets to cover its current liabilities. This suggests strong short-term liquidity and ability to meet its short-term obligations comfortably.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also been healthy, staying above 1 in most quarters. This indicates that the company has an adequate level of highly liquid assets to cover its short-term liabilities without relying on selling inventory.

The cash ratio, which measures a company's ability to cover its current liabilities with its cash and cash equivalents, shows a fluctuating trend. While the cash ratio has varied, it generally remains above 1, indicating that Columbia Sportswear Co. has sufficient cash on hand to cover its short-term obligations, though this ratio shows more variability compared to the other two liquidity ratios.

Overall, based on the consistently high current and quick ratios, Columbia Sportswear Co. appears to have a strong liquidity position, which suggests that the company is well-equipped to handle its short-term financial commitments and manage any unforeseen liquidity needs effectively.

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	102.22	150.06	138.53	132.83	140.58	151.25	115.88	103.92	105.68	141.24	114.51	133.68	166.03	239.23	172.28	141.96	142.39	204.51	148.11	129.10

The cash conversion cycle of Columbia Sportswear Co. fluctuated over the quarters, ranging from 149.28 days in Q1 2022 to 220.33 days in Q2 2023. A shorter cash conversion cycle indicates that the company is more efficient in managing its working capital.

In the most recent quarter, Q4 2023, the cash conversion cycle decreased to 150.29 days from 215.24 days in the previous quarter, Q3 2023. This suggests that the company improved its management of inventory, accounts receivable, and accounts payable during this period.

The cash conversion cycle reached its lowest point in Q1 2022 at 149.28 days, signaling a very efficient working capital management at that time. Conversely, it peaked in Q2 2023 at 220.33 days, indicating potential challenges in optimizing working capital efficiency during that period.

Overall, monitoring and effectively managing the cash conversion cycle is crucial for Columbia Sportswear Co. to ensure optimal liquidity and operational efficiency in its business operations.