Skechers USA Inc (SKX)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,189,910 | 615,733 | 796,283 | 1,370,830 | 824,876 |
| Short-term investments | US$ in thousands | 72,595 | 102,166 | 98,580 | 100,767 | 112,037 |
| Total current liabilities | US$ in thousands | 1,660,870 | 1,613,040 | 1,445,580 | 1,212,710 | 1,238,230 |
| Cash ratio | 0.76 | 0.45 | 0.62 | 1.21 | 0.76 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,189,910K
+ $72,595K)
÷ $1,660,870K
= 0.76
The cash ratio of Skechers U S A, Inc. has fluctuated over the past five years. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet obligations without relying on external sources of funding.
In 2023, the cash ratio stood at 0.89, which indicates that the company had $0.89 in cash and cash equivalents for every $1 of current liabilities. This represents an improvement compared to the previous year where the ratio was 0.55. The significant increase in the cash ratio from 2022 to 2023 suggests that Skechers U S A, Inc. may have strengthened its liquidity position or reduced its short-term liabilities.
Despite the improvement in 2023, the current cash ratio remains lower than the ratio in 2020, when it was 1.35, indicating that the company had a higher level of cash relative to its short-term obligations at that time. The 2023 ratio of 0.89 still indicates that Skechers U S A, Inc. may have adequate liquidity to cover its short-term liabilities but could potentially consider increasing its cash reserves to improve its financial flexibility.
Overall, the trend in Skechers U S A, Inc.'s cash ratio reflects fluctuations in the company's liquidity position over the past five years, with the most recent ratio of 0.89 suggesting a moderate level of liquidity but room for improvement compared to previous years.
Peer comparison
Dec 31, 2023