Six Flags Entertainment Corporation (FUN)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019
Current ratio 0.50 0.45 0.52 0.30 0.53 0.45 0.61 0.95 0.94 0.65 0.69 1.80 1.18 1.44 1.85 1.15 1.79 0.52 0.91 1.17
Quick ratio 0.10 0.08 0.16 0.30 0.10 0.08 0.26 0.63 0.25 0.12 0.16 1.35 0.66 0.82 1.26 0.76 1.30 0.15 0.56 0.78
Cash ratio 0.10 0.08 0.16 0.30 0.10 0.08 0.26 0.63 0.25 0.12 0.16 1.35 0.66 0.82 1.26 0.76 1.30 0.15 0.56 0.78

The liquidity ratios of Six Flags Entertainment Corporation show a fluctuating trend over the past several quarters.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has varied from a low of 0.30 in September 2023 to a high of 1.85 in December 2020. The current ratio has generally been below 1 in recent quarters, indicating potential challenges in meeting short-term obligations using current assets alone.

The quick ratio, a more stringent liquidity measure that excludes inventory from current assets, has also shown variability, ranging from 0.08 to 1.35. Similar to the current ratio, the quick ratio has been consistently below 1, suggesting potential cash flow constraints and reliance on inventory to meet short-term obligations.

The cash ratio, which is the most conservative liquidity ratio focusing solely on cash and cash equivalents to cover current liabilities, has exhibited similar fluctuations, with values ranging from 0.08 to 1.35. The cash ratio, like the other liquidity ratios, has generally been below 1, indicating that Six Flags may face challenges in meeting immediate obligations with its available cash reserves.

Overall, the trend in liquidity ratios for Six Flags Entertainment Corporation points to potential liquidity challenges, as indicated by consistently low ratios across different quarters. This may signal a need for the company to improve its cash management strategies and ensure it has adequate liquidity to meet its short-term obligations.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019
Cash conversion cycle days 26.87 38.30 42.46 125.10 147.21 126.54 100.66 113.25 141.02 118.47 104.22 144.05 376.59 732.75 619.12 458.81 190.79 21.59 95.11 109.52

The cash conversion cycle of Six Flags Entertainment Corporation has exhibited significant fluctuations over the past few quarters. The company's ability to convert its investments in inventory and accounts receivable into cash has varied widely, with values ranging from as low as 21.59 days to as high as 732.75 days.

In the most recent quarter, ending on June 30, 2024, the cash conversion cycle was 26.87 days, indicating that Six Flags was able to efficiently convert its resources into cash during that period. This represented an improvement from the previous quarter, where the cycle was 38.30 days.

However, looking back over the historical data, there were instances of prolonged cash conversion cycles, notably in the quarters ending on March 31, 2021, and March 31, 2022, where cycles lasted 732.75 days and 376.59 days, respectively. These extended cycles suggest potential challenges in managing inventory and collecting receivables efficiently during those periods.

Overall, it is evident that Six Flags Entertainment Corporation has experienced fluctuations in its cash conversion cycle, reflecting varying levels of efficiency in managing working capital components. Further analysis of the underlying factors driving these fluctuations would be necessary to understand the company's financial operations more comprehensively.