Crocs Inc (CROX)
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 | 1.18 | 1.43 | 1.50 | 1.76 | 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 |
| Quick ratio | 0.60 | 0.80 | 0.86 | 1.02 | 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 |
| Cash ratio | 0.24 | 0.27 | 0.24 | 0.25 | 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 |
Crocs Inc's liquidity ratios show fluctuations over the past few years. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has ranged from 1.18 to 2.63. The current ratio peaked at 2.63 on September 30, 2021, indicating a strong ability to meet short-term liabilities, while it hit a low of 1.18 on December 31, 2024, suggesting a tighter liquidity position.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has shown a similar pattern. It ranged from 0.60 to 1.90, with the highest value recorded on September 30, 2021, and the lowest value on December 31, 2024.
The cash ratio, which indicates the proportion of current liabilities that could be covered by cash and cash equivalents, fluctuated between 0.20 and 1.25. The peak value was observed on September 30, 2021, while the lowest value was reported on March 31, 2023.
Overall, Crocs Inc's liquidity ratios have varied over the years, with certain periods indicating stronger liquidity positions than others. It is essential for the company to maintain a healthy balance between current assets and liabilities to ensure it can meet its short-term financial obligations effectively.
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 | 34.17 | 48.18 | 54.79 | 64.48 | 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 |
The cash conversion cycle of Crocs Inc has shown variations over the years. It measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to March 31, 2021, the company's cash conversion cycle decreased from 82.91 days to 70.25 days, indicating an improvement in efficiency. However, this trend reversed in the following periods, with the cycle increasing to 103.31 days as of June 30, 2022. This suggests that the company may be facing challenges in managing its working capital effectively.
Subsequently, Crocs Inc managed to reduce its cash conversion cycle significantly by December 31, 2024, reaching a low of 34.17 days. This reduction indicates that the company improved its ability to convert inventory into sales and collect cash more efficiently during this period.
Overall, fluctuations in the cash conversion cycle of Crocs Inc reflect changes in inventory management, accounts receivable collection, and accounts payable payment practices. It is essential for the company to monitor and optimize this cycle to ensure a healthy cash flow and sustainable operations.