Callaway Golf Company (MODG)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 187,100 | 207,100 | 184,500 | 124,850 | 139,111 |
| Total current liabilities | US$ in thousands | 825,900 | 947,600 | 1,176,200 | 866,000 | 391,272 |
| Quick ratio | 0.77 | 0.64 | 0.31 | 0.55 | 1.29 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($445,000K
+ $—K
+ $187,100K)
÷ $825,900K
= 0.77
The quick ratio of Callaway Golf Company has shown fluctuating trends over the past five years. It stood at 1.29 on December 31, 2020, indicating strong short-term liquidity. However, there was a substantial decrease in the quick ratio to 0.55 on December 31, 2021, suggesting a potential liquidity challenge. The ratio further declined to 0.31 on December 31, 2022, reflecting a significant decrease in the company's ability to cover its short-term obligations with its liquid assets.
There was a slight improvement in the quick ratio to 0.64 on December 31, 2023. This increase may indicate better management of liquidity or a decrease in short-term obligations. By December 31, 2024, the quick ratio further improved to 0.77, although it remained below the ideal value of 1.0. This improvement suggests a potential enhancement in the company's ability to meet its short-term obligations using its liquid assets.
Overall, the trend in Callaway Golf Company's quick ratio indicates varying levels of short-term liquidity over the years, with a mix of challenges and improvements. It would be prudent for the company to closely monitor its liquidity position and implement strategies to maintain a healthy quick ratio in the future.
Peer comparison
Dec 31, 2024