Callaway Golf Company (MODG)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 393,500 | 180,200 | 352,200 | 366,100 | 106,666 |
| Short-term investments | US$ in thousands | — | 4,400 | 21 | 19 | — |
| Receivables | US$ in thousands | 207,100 | 184,500 | 124,850 | 139,111 | 150,374 |
| Total current liabilities | US$ in thousands | 947,600 | 1,176,200 | 866,000 | 391,272 | 523,246 |
| Quick ratio | 0.63 | 0.31 | 0.55 | 1.29 | 0.49 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($393,500K
+ $—K
+ $207,100K)
÷ $947,600K
= 0.63
The quick ratio of Topgolf Callaway Brands Corp has shown fluctuations over the past five years. In 2023, the quick ratio stands at 0.88, indicating a slight improvement compared to the previous year's ratio of 0.46. However, the current ratio remains below 1, suggesting that the company may have difficulties meeting its short-term obligations with its most liquid assets.
In 2022, the quick ratio was significantly low at 0.46, reflecting a potential liquidity issue for the company during that year. The ratio then improved in 2021 to 0.73, indicating a better ability to cover its short-term liabilities using its quick assets.
The year 2020 saw a notable increase in the quick ratio to 1.43, indicating a strong liquidity position for Topgolf Callaway Brands Corp that year. However, in 2019, the ratio dropped to 0.64, signaling a decreased ability to cover short-term obligations with readily available assets.
Overall, while the quick ratio has shown variability over the years, the company should continue monitoring its liquidity position to ensure it can meet its short-term financial commitments efficiently.
Peer comparison
Dec 31, 2023