Callaway Golf Company (MODG)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 393,500 | 180,200 | 352,200 | 366,100 | 106,666 |
| Short-term investments | US$ in thousands | — | 4,400 | 21 | 19 | — |
| Total current liabilities | US$ in thousands | 947,600 | 1,176,200 | 866,000 | 391,272 | 523,246 |
| Cash ratio | 0.42 | 0.16 | 0.41 | 0.94 | 0.20 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($393,500K
+ $—K)
÷ $947,600K
= 0.42
The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates that a company has more liquid assets available to cover its current liabilities.
Topgolf Callaway Brands Corp's cash ratio has fluctuated over the past five years, ranging from a low of 0.27 in 2022 to a high of 1.08 in 2020. In 2023, the cash ratio increased to 0.55, showing an improvement compared to the previous year.
The increase in the cash ratio in 2023 suggests that Topgolf Callaway Brands Corp had a higher level of cash and cash equivalents relative to its current liabilities, indicating a stronger liquidity position compared to 2022. However, the cash ratio is still lower than the level seen in 2020, indicating that the company may have less liquidity available to cover its short-term obligations.
It is important for the company to continue monitoring its cash position and managing its liquidity effectively to ensure it can meet its short-term financial obligations.
Peer comparison
Dec 31, 2023