Skechers USA Inc (SKX)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Current ratio 1.97 1.96 2.06 2.39 2.38 2.52 2.48 2.41 2.26 2.27 2.34 2.44 2.33 2.47 2.43 2.73 2.76 2.69 2.91 3.10
Quick ratio 0.55 0.61 0.68 0.68 0.76 0.78 0.66 0.55 0.45 0.39 0.56 0.49 0.62 0.78 0.90 1.09 1.21 1.11 1.35 1.24
Cash ratio 0.55 0.61 0.68 0.68 0.76 0.78 0.66 0.55 0.45 0.39 0.56 0.49 0.62 0.78 0.90 1.09 1.21 1.11 1.35 1.24

Skechers USA Inc's current ratio has shown a general declining trend from 3.10 in March 2020 to 1.97 by December 31, 2024. It decreased from 2.76 as of December 2020 to 1.96 as of September 2024. This indicates a decrease in the company's ability to cover its short-term obligations with its current assets over the years.

In terms of the quick ratio, Skechers has experienced a similar decreasing trend from 1.35 in June 2020 to 0.55 by March 31, 2023, before slightly improving to 0.61 by September 30, 2024. The quick ratio dropped significantly from 1.21 in December 2020 to 0.55 by March 31, 2023, indicating a potential issue in the company's ability to meet its short-term obligations with its most liquid assets.

The cash ratio, which measures the company's ability to pay off its current liabilities with only its cash and cash equivalents, has followed a similar declining pattern. It decreased from 1.21 in December 2020 to 0.55 by March 31, 2024, suggesting a reduction in the company's ability to cover its short-term liabilities solely with available cash.

Overall, the downward trends in the current, quick, and cash ratios indicate a potential liquidity challenge for Skechers USA Inc over the analyzed period. Management may need to closely monitor and improve the company's liquidity position to ensure its ability to meet its short-term financial obligations.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Cash conversion cycle days 162.87 148.79 137.67 125.92 144.69 129.43 137.70 138.57 168.88 170.58 158.81 154.14 168.53 148.95 132.65 158.27 154.14 158.59 153.14 131.43

The cash conversion cycle of Skechers USA Inc fluctuated over the period provided in the dataset. The cash conversion cycle represents the number of days it takes for a company to convert its investment in inventory and other resources into cash flows from sales.

From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 125.92 days on March 31, 2024, to a high of 170.58 days on September 30, 2022. Generally, a lower cash conversion cycle is desirable as it indicates that the company is more efficient in managing its working capital.

Skechers experienced some fluctuations in its cash conversion cycle, reaching a peak in the latter part of 2022 and early 2023, before trending downwards towards the latter half of 2023 and 2024. This could suggest improvements in inventory management, accounts receivable collection, and accounts payable payment processes during this period.

Overall, a downward trend in the cash conversion cycle indicates the company is managing its working capital more efficiently, while an upward trend may signal inefficiencies that could impact liquidity and cash flow management in the business. Skechers should continue to monitor and manage its cash conversion cycle to ensure optimal working capital management and operational efficiency.