Skechers USA Inc (SKX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,952,600 | 3,646,270 | 3,372,240 | 3,344,350 | 2,819,590 |
| Total current liabilities | US$ in thousands | 1,660,870 | 1,613,040 | 1,445,580 | 1,212,710 | 1,238,230 |
| Current ratio | 2.38 | 2.26 | 2.33 | 2.76 | 2.28 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,952,600K ÷ $1,660,870K
= 2.38
The current ratio of Skechers U S A, Inc. has shown some fluctuations over the past five years, ranging from 2.26 to 2.76. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio typically indicates a healthier liquidity position, as it means the company has more current assets available to cover its short-term liabilities.
In 2023, Skechers U S A, Inc. reported a current ratio of 2.38, which indicates a slight improvement from the previous year's ratio of 2.26. This suggests that the company had $2.38 in current assets for every $1 in current liabilities at the end of 2023. While the current ratio is above 2, indicating a strong ability to meet short-term obligations, it is essential to monitor trends over time to ensure continued financial stability.
It's worth noting that although the 2023 current ratio improved, the ratio in 2021 and 2020 was higher at 2.33 and 2.76, respectively. This indicates that there may have been changes in the company's liquidity management or operational efficiency over the years. Overall, a current ratio above 2 signifies that Skechers U S A, Inc. has sufficient current assets to cover its current liabilities, but stakeholders should continue monitoring this ratio in conjunction with other financial metrics to assess the company's overall financial health.
Peer comparison
Dec 31, 2023