Six Flags Entertainment Corporation (FUN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 65,488 | 101,189 | 61,119 | 376,736 | 182,252 |
| Short-term investments | US$ in thousands | 319 | 432 | 478 | 280 | 275 |
| Total current liabilities | US$ in thousands | 402,726 | 396,972 | 381,514 | 299,981 | 324,138 |
| Cash ratio | 0.16 | 0.26 | 0.16 | 1.26 | 0.56 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($65,488K
+ $319K)
÷ $402,726K
= 0.16
The cash ratio, which is calculated by dividing cash and cash equivalents by current liabilities, provides insight into a company's ability to cover its short-term liabilities using its readily available cash.
Looking at the trend in Six Flags Entertainment Corporation's cash ratio over the past five years, we observe fluctuations. The cash ratio was relatively low in 2023 at 0.16, indicating that the company had $0.16 in cash and equivalents for every dollar of current liabilities. This ratio decreased from the previous year, suggesting a potential decrease in the company's liquidity position.
In 2022, the cash ratio was 0.26, indicating an improvement from the prior year. A cash ratio above 1.0 is generally considered healthy, as it means the company can cover all its current liabilities with cash on hand. However, Six Flags Entertainment Corporation has not achieved this level in recent years.
In 2021 and 2019, the cash ratio was 0.16 and 0.56 respectively, showing fluctuations in the company's liquidity position. The significant increase in the cash ratio in 2020 to 1.26 reflects a strong liquidity position that year, suggesting the company had ample cash to cover its short-term obligations.
Overall, the varying cash ratios of Six Flags Entertainment Corporation indicate fluctuations in its liquidity position, which may have implications for its ability to meet short-term financial obligations efficiently. It would be important to further analyze the company's cash management practices and explore ways to maintain a more stable and favorable cash ratio in the future.
Peer comparison
Dec 31, 2023