Skechers USA Inc (SKX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,116,520 | 1,189,910 | 615,733 | 796,283 | 1,370,830 |
| Short-term investments | US$ in thousands | 118,470 | 72,595 | 102,166 | 98,580 | 100,767 |
| Total current liabilities | US$ in thousands | 2,256,480 | 1,660,870 | 1,613,040 | 1,445,580 | 1,212,710 |
| Cash ratio | 0.55 | 0.76 | 0.45 | 0.62 | 1.21 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,116,520K
+ $118,470K)
÷ $2,256,480K
= 0.55
The cash ratio of Skechers USA Inc has shown some fluctuations over the past five years. As of December 31, 2020, the company had a relatively healthy cash ratio of 1.21, indicating that it had sufficient liquid assets to cover its short-term liabilities. However, by December 31, 2021, the cash ratio declined to 0.62, suggesting a decrease in the company's ability to meet its short-term obligations with its available cash.
Further, by December 31, 2022, the cash ratio fell even lower to 0.45, raising concerns about the company's liquidity position. The management may need to closely monitor its cash management strategies to ensure sufficient funds are available for operational needs and potential emergencies.
On a positive note, the cash ratio improved to 0.76 by December 31, 2023, indicating a slight recovery in the company's liquidity position. However, by December 31, 2024, the cash ratio dropped again to 0.55, showing that challenges in maintaining an adequate level of cash reserves persist for Skechers USA Inc.
In conclusion, the fluctuating trend in Skechers USA Inc's cash ratio highlights the importance of maintaining a balance between liquidity and investment opportunities. Continued monitoring and strategic financial planning are crucial for the company to navigate potential cash flow challenges and ensure its financial health in the long term.
Peer comparison
Dec 31, 2024