Callaway Golf Company (MODG)

Liquidity ratios

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 Jun 30, 2019 Mar 31, 2019
Current ratio 1.72 1.76 1.78 1.63 1.29 1.31 1.29 1.21 1.35 1.59 1.59 1.73 2.33 2.49 2.45 1.44 1.51 1.79 1.70 1.59
Quick ratio 0.63 0.70 0.65 0.60 0.31 0.47 0.54 0.58 0.55 0.91 0.94 1.05 1.29 1.74 1.15 0.69 0.49 0.80 0.78 0.72
Cash ratio 0.42 0.36 0.21 0.17 0.16 0.20 0.17 0.21 0.41 0.60 0.53 0.58 0.94 1.07 0.48 0.26 0.20 0.22 0.18 0.15

The current ratio, which measures Topgolf Callaway Brands Corp's ability to cover its short-term liabilities with its current assets, has shown an improving trend over the past eight quarters. The ratio has increased from 1.21 in Q1 2022 to 1.72 in Q4 2023, indicating a stronger liquidity position.

On the other hand, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also displayed an upward trend, although with more volatility compared to the current ratio. The quick ratio has fluctuated between 0.46 and 0.95 over the same period, showing a degree of variability in Topgolf Callaway Brands Corp's ability to meet its short-term obligations without relying on inventory.

The cash ratio, which provides the most conservative liquidity assessment by only considering cash and cash equivalents, has generally been increasing from 0.27 in Q4 2022 to 0.55 in Q4 2023. This indicates that Topgolf Callaway Brands Corp has been gradually building up its cash reserves relative to its current liabilities over time.

Overall, the improving current ratio, varying quick ratio, and increasing cash ratio suggest that Topgolf Callaway Brands Corp's liquidity position has strengthened over the past eight quarters, providing a positive indication of the company's ability to meet its short-term financial obligations.

Additional liquidity measure

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 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 235.45 234.88 270.97 280.35 295.33 228.52 194.62 190.07 179.05 119.82 114.05 115.50 92.61 130.86 142.76 160.54 120.92 140.94 171.03 190.08

The cash conversion cycle for Topgolf Callaway Brands Corp has shown some fluctuations over the past eight quarters. In Q1 2022, the company had a cash conversion cycle of 143.21 days which then decreased to 145.15 days in Q2 2022. Following this, there was a significant increase in the cash conversion cycle to 162.36 days in Q3 2022 before peaking at 204.81 days in Q4 2022.

However, from Q1 2023 onwards, there has been a gradual improvement in the cash conversion cycle. It decreased to 201.06 days in Q1 2023, followed by further declines to 198.71 days in Q2 2023 and 176.40 days in Q3 2023. The most recent data point shows a cash conversion cycle of 175.50 days in Q4 2023.

The decreasing trend in the cash conversion cycle since Q1 2023 indicates that the company has been managing its working capital more efficiently, which is a positive sign. A lower cash conversion cycle suggests that the company is able to convert its inventory and receivables into cash more quickly, which can improve liquidity and financial performance.

Overall, Topgolf Callaway Brands Corp appears to be making improvements in its cash conversion cycle, which can have positive implications for its financial health and operational efficiency. However, it would be important to continue monitoring this metric to ensure sustained improvement over time.