Callaway Golf Company (MODG)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 445,000 | 393,500 | 180,200 | 352,200 | 366,100 |
| Short-term investments | US$ in thousands | — | 5,200 | 4,400 | 21 | 19 |
| Total current liabilities | US$ in thousands | 825,900 | 947,600 | 1,176,200 | 866,000 | 391,272 |
| Cash ratio | 0.54 | 0.42 | 0.16 | 0.41 | 0.94 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($445,000K
+ $—K)
÷ $825,900K
= 0.54
The cash ratio of Callaway Golf Company has fluctuated significantly over the years based on the provided data. As of December 31, 2020, the cash ratio stood at 0.94, indicating that the company had $0.94 in cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2021, the cash ratio dropped to 0.41, suggesting a decrease in the company's ability to cover its short-term obligations solely with its cash reserves.
In the subsequent years, there were further fluctuations in the cash ratio. By December 31, 2022, the ratio declined to 0.16, signaling a significant decrease in the company's liquidity position. However, there was an improvement by December 31, 2023, where the cash ratio increased to 0.42, implying a better ability to meet short-term obligations with available cash.
By the end of December 31, 2024, the cash ratio further improved to 0.54, indicating a strengthening of Callaway Golf Company's liquidity position compared to the previous years. Overall, the trend in the cash ratio implies variable levels of liquidity management by the company over the analyzed period.
Peer comparison
Dec 31, 2024