Skechers USA Inc (SKX)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,256,480 | 1,660,870 | 1,613,040 | 1,445,580 | 1,212,710 |
| Quick ratio | 0.55 | 0.76 | 0.45 | 0.62 | 1.21 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,116,520K
+ $118,470K
+ $—K)
÷ $2,256,480K
= 0.55
The quick ratio of Skechers USA Inc has shown fluctuations over the past five years. Starting at 1.21 on December 31, 2020, the ratio decreased to 0.62 by the end of 2021, indicating a potential liquidity strain. This downward trend continued as the quick ratio dropped further to 0.45 by the end of 2022, suggesting a potential difficulty in meeting short-term obligations with liquid assets alone.
However, there was a slight improvement in the quick ratio by the end of 2023, reaching 0.76, which may indicate a better ability to cover immediate liabilities with liquid assets compared to the previous year. Nonetheless, the ratio dropped again to 0.55 by the end of 2024, signaling a potential liquidity challenge.
Overall, the declining trend in the quick ratio of Skechers USA Inc raises concerns about its short-term liquidity position and ability to meet immediate financial obligations solely using its liquid assets. Further analysis of the company's cash management and short-term asset utilization may be necessary to address these liquidity issues.
Peer comparison
Dec 31, 2024