Crocs Inc (CROX)
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 | 1.30 | 1.51 | 1.65 | 1.76 | 1.60 | 1.97 | 1.94 | 1.96 | 1.72 | 2.63 | 1.78 | 2.23 | 1.69 | 1.70 | 2.12 | 2.18 | 1.65 | 1.68 | 1.74 | 1.95 |
| Quick ratio | 0.66 | 0.81 | 0.87 | 0.86 | 0.78 | 0.95 | 1.02 | 1.08 | 1.08 | 1.90 | 1.14 | 1.50 | 0.99 | 0.97 | 1.35 | 1.20 | 0.85 | 0.93 | 1.09 | 1.20 |
| Cash ratio | 0.21 | 0.20 | 0.25 | 0.20 | 0.30 | 0.25 | 0.31 | 0.32 | 0.55 | 1.25 | 0.52 | 0.79 | 0.47 | 0.44 | 0.65 | 0.45 | 0.42 | 0.38 | 0.42 | 0.39 |
Crocs Inc's liquidity ratios show mixed performance over the past eight quarters. The current ratio has fluctuated between 1.30 and 1.76, indicating the company's ability to cover its short-term liabilities with current assets. Although the current ratio has decreased from Q1 2023 to Q4 2023, it remains above 1, suggesting adequate liquidity levels.
The quick ratio has also varied, ranging from 0.75 to 1.19. This ratio considers only the most liquid assets to cover short-term obligations, with values above 1 indicating a strong liquidity position. While the quick ratio has decreased in Q4 2023, it still suggests that Crocs Inc can meet its immediate financial obligations using its most liquid assets.
In terms of the cash ratio, the company's ability to pay off current liabilities with its cash and cash equivalents has fluctuated between 0.26 and 0.40. A cash ratio below 1 typically raises concerns about the company's ability to cover short-term obligations solely with cash. However, Crocs Inc's cash ratio has remained relatively stable above 0.26, indicating a reasonable level of cash reserves compared to current liabilities.
Overall, Crocs Inc's liquidity ratios show resilience, with the current and quick ratios indicating adequate liquidity levels. However, the declining trend in these ratios should be monitored to ensure the company maintains a strong liquidity position in the future.
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 | 45.16 | 60.66 | 62.60 | 73.94 | 65.34 | 95.68 | 103.31 | 99.11 | 43.90 | 58.02 | 56.69 | 70.25 | 59.36 | 62.27 | 72.34 | 82.91 | 57.66 | 58.11 | 68.18 | 76.99 |
The cash conversion cycle of Crocs Inc has shown fluctuations over the past eight quarters. In Q1 2023, the company's cash conversion cycle was at its shortest point of 56.36 days, indicating that Crocs was efficient in managing its cash flow from operations, inventory, and receivables during that period.
However, this efficiency deteriorated in the following quarters, with the cash conversion cycle increasing to 75.76 days in Q3 2023 and further to 77.65 days in Q2 2023. This suggests that the company took longer to convert its inventory and receivables into cash during these periods, potentially impacting its liquidity and working capital management.
A significant spike in the cash conversion cycle was observed in Q3 and Q4 2022, reaching 129.27 days and 138.04 days respectively. This indicates that Crocs faced challenges in efficiently managing its working capital and cash flow during those quarters, potentially leading to cash flow constraints and operational inefficiencies.
Overall, Crocs Inc's cash conversion cycle has experienced fluctuations, with periods of efficiency followed by challenges in working capital management. It is essential for the company to closely monitor and improve its cash conversion cycle to ensure optimal liquidity and operational efficiency in the future.