SkyWest Inc (SKYW)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	148,277	102,984	258,421	215,723	87,206
Short-term investments	US$ in thousands	686,946	944,231	601,989	610,185	432,966
Total current liabilities	US$ in thousands	1,254,290	1,172,540	1,194,620	941,722	924,676
Cash ratio		0.67	0.89	0.72	0.88	0.56

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($148,277K + $686,946K) ÷ $1,254,290K
= 0.67

The cash ratio of Skywest Inc. has shown some fluctuations over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. In 2023, the cash ratio stands at 0.74, indicating that for every dollar of current liabilities, Skywest Inc. has $0.74 in cash and cash equivalents.

Compared to the prior year, there has been a decrease in the cash ratio from 0.98 in 2022 to 0.74 in 2023. This decline suggests a potential decrease in the company's ability to cover its short-term obligations solely with cash reserves.

When looking at the trend over the past five years, the cash ratio has varied, with the highest ratio observed in 2022 at 0.98 and the lowest in 2019 at 0.60. This indicates fluctuations in the company's liquidity position over time.

Overall, while the cash ratio of Skywest Inc. has shown some variability, it is essential to further analyze the company's overall liquidity position and financial health in conjunction with other financial ratios and metrics for a more comprehensive assessment.