Crocs Inc (CROX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 149,288 | 191,629 | 213,197 | 135,802 | 108,253 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 310,160 | 310,346 | 204,930 | 151,704 | 109,540 |
| Total current liabilities | US$ in thousands | 698,296 | 641,274 | 388,243 | 291,584 | 257,223 |
| Quick ratio | 0.66 | 0.78 | 1.08 | 0.99 | 0.85 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($149,288K
+ $—K
+ $310,160K)
÷ $698,296K
= 0.66
Crocs Inc's quick ratio has fluctuated over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its liquid assets alone.
The quick ratio decreased from 1.08 in 2020 to 0.98 in 2019, which could be a cause for concern as it suggests a potential liquidity issue. However, the ratio increased to 1.17 in 2021, indicating an improvement in the company's ability to cover its short-term liabilities with its quick assets.
The ratio then decreased in 2022 to 0.86 and further decreased to 0.75 in 2023. A quick ratio below 1 may signal that the company could struggle to meet its short-term obligations without relying on selling inventory or obtaining additional financing.
Overall, the decreasing trend in Crocs Inc's quick ratio over the past two years raises concerns about the company's short-term liquidity position and may warrant further investigation into the company's ability to manage its current liabilities effectively.
Peer comparison
Dec 31, 2023