Columbia Sportswear Company (COLM)

Quick ratio

		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	US$ in thousands	350,319	213,282	231,571	361,049	430,241	159,221	413,110	435,240	763,404	599,479	819,806	873,641	763,404	313,429	474,793	671,108	686,009	239,311	386,150	430,447
Short-term investments	US$ in thousands	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	1,668	1,477	138,198	272,603
Receivables	US$ in thousands	423,079	686,821	343,835	466,690	547,561	600,457	296,636	408,186	487,803	500,451	279,763	338,787	452,945	479,376	217,536	312,951	488,233	646,414	280,641	341,136
Total current liabilities	US$ in thousands	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	630,915	558,147	577,981	479,844
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($350,319K + $414,185K + $423,079K) ÷ $596,627K
= 1.99

The quick ratio measures a company's ability to meet its short-term liabilities with its most liquid assets. A higher quick ratio indicates a stronger financial position and better ability to cover immediate obligations.

Looking at the trend in Columbia Sportswear Co.'s quick ratio over the past eight quarters, we can see fluctuations. In Q4 2023, the quick ratio was 2.13, indicating that the company had $2.13 of quick assets for every $1 of current liabilities. This represents a significant improvement from the previous quarter where the quick ratio was 1.90.

The quick ratio reached its lowest point in Q2 2023 at 1.33, indicating a decrease in the company's ability to cover its short-term obligations with liquid assets. However, it rebounded in Q3 2023 to 1.90 before further improving in Q4 2023.

Comparing the quick ratios to the same periods in the previous year, we see a general upward trend, suggesting that Columbia Sportswear Co. has been improving its liquidity position over time. It is important to continue monitoring the quick ratio to ensure the company maintains a healthy liquidity position and can effectively manage its short-term obligations.