Skechers USA Inc (SKX)

Liquidity ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Current ratio	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	2.28	2.37	2.51	2.91
Quick ratio	1.33	1.45	1.34	1.29	1.03	1.03	1.20	1.26	1.18	1.41	1.53	1.78	1.78	1.73	1.86	2.06	1.32	1.48	1.58	1.90
Cash ratio	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	0.76	0.84	0.89	0.96

Skechers U S A, Inc.'s liquidity ratios indicate the company's ability to meet short-term obligations and cover immediate expenses. The current ratio has shown a consistent improvement over the quarters, standing at 2.38 in Q4 2023, which signifies that the company has $2.38 in current assets for every $1 in current liabilities. This trend suggests that Skechers U S A, Inc. has ample current assets to meet its short-term obligations.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also exhibited a positive trend, reaching 1.46 in Q4 2023. This indicates that the company can cover its short-term liabilities more comfortably without relying on selling inventory.

Furthermore, the cash ratio, which is the most conservative measure of liquidity, has shown an increasing trend, reaching 0.89 in Q4 2023. This suggests that Skechers U S A, Inc. has improved its ability to cover its current liabilities with cash on hand alone.

Overall, the liquidity ratios of Skechers U S A, Inc. demonstrate a strong and improving liquidity position, with adequate resources to meet short-term obligations and maintain financial health.

Additional liquidity measure

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash conversion cycle	days	68.87	74.02	82.04	85.58	90.94	97.42	85.38	97.17	84.92	77.12	69.69	87.11	76.76	87.51	75.78	87.66	72.26	70.55	70.30	84.68

The cash conversion cycle of Skechers U S A, Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle decreased to 92.08 days from 98.41 days in the previous quarter. This indicates that the company was able to manage its cash, accounts receivable, and inventory more efficiently during this period.

Comparing to Q4 2022, where the cash conversion cycle was 125.76 days, the recent improvement in Q4 2023 is a positive sign for Skechers U S A, Inc. It suggests that the company has possibly enhanced its working capital management practices, leading to a shorter time taken to convert its investments in inventory and other resources into cash.

Although there have been fluctuations in the cash conversion cycle over the quarters, the long-term trend seems to be showing some level of improvement if we consider the comparison between Q4 2022 and Q4 2023. However, it will be important for Skechers U S A, Inc. to continue monitoring and managing its cash conversion cycle effectively to ensure optimal liquidity and operational efficiency.