Columbia Sportswear Company (COLM)

Quick ratio

		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	US$ in thousands	531,869	306,680	341,822	418,462	350,319	213,282	231,571	361,049	430,241	159,221	413,110	435,240	763,404	599,479	819,806	873,641	790,725	313,429	474,793	671,108
Short-term investments	US$ in thousands	283,608	67,244	369,276	369,270	414,185	1,474	71,225	99,511	722	972	1,108	175,024	131,145	1,132	1,138	920	1,224	1,095	975	35,828
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	766,545	566,940	544,441	447,306	596,627	525,960	557,268	568,685	738,718	696,656	618,444	571,014	680,390	590,719	567,600	474,968	552,622	499,594	535,828	610,355
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

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($531,869K + $283,608K + $—K) ÷ $766,545K
= 1.06

The quick ratio, also known as the acid-test ratio, is a financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy as it indicates that a company can cover its short-term liabilities using its current liquid assets.

Analyzing the quick ratio trend of Columbia Sportswear Company from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio over time. The quick ratio fluctuated between 0.23 and 1.84 during this period, with the highest value of 1.84 observed in March 31, 2021, and the lowest value of 0.23 in September 30, 2022.

In general, a quick ratio above 1 indicates that Columbia Sportswear Company had more than enough liquid assets to cover its short-term liabilities. However, a quick ratio below 1, as seen in several periods like September 30, 2020, and June 30, 2022, suggests that the company may have had difficulty meeting its short-term obligations without relying on external funding sources or reducing its current assets.

It is noteworthy that the quick ratio improved towards the end of the period, reaching 1.06 in December 31, 2024, which may indicate a strengthening of the company's liquidity position and ability to meet its short-term obligations with its current liquid assets.

Overall, the fluctuations in Columbia Sportswear Company's quick ratio highlight both strengths and potential liquidity challenges that the company faced during the period under review. It is essential for investors and stakeholders to continue monitoring the quick ratio to assess the company's liquidity position and financial health effectively.