SkyWest Inc (SKYW)

Cash ratio

		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 and cash equivalents	US$ in thousands	148,277	125,330	114,433	74,524	102,984	38,850	96,071	246,001	258,421	271,831	345,854	231,005	215,723	418,228	452,247	289,544	87,206	307,909	253,661	290,885
Short-term investments	US$ in thousands	686,946	694,171	747,916	861,335	944,231	965,347	878,608	610,450	601,989	640,673	609,821	605,438	610,185	403,793	309,823	288,351	432,966	263,597	295,900	253,397
Total current liabilities	US$ in thousands	1,254,290	1,205,670	1,165,990	1,152,100	1,172,540	1,159,900	1,198,410	1,142,290	1,194,620	1,137,760	1,109,360	950,438	941,722	859,904	986,187	1,019,840	924,676	961,539	927,328	945,327
Cash ratio		0.67	0.68	0.74	0.81	0.89	0.87	0.81	0.75	0.72	0.80	0.86	0.88	0.88	0.96	0.77	0.57	0.56	0.59	0.59	0.58

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 seen a declining trend over the past eight quarters. In Q4 2023, the cash ratio stood at 0.74, indicating that the company had $0.74 in cash and cash equivalents for every $1 of current liabilities.

Since Q1 2022, there has been a gradual decrease in the cash ratio from 0.78 to 0.74 in Q4 2023. This downward trend suggests a potential liquidity challenge for the company, as it may have less available cash to cover its short-term obligations.

It is important to note that a lower cash ratio could indicate a higher risk of liquidity issues, such as difficulty in meeting immediate financial obligations. Management should closely monitor and assess the company's cash position to ensure it remains sufficient to cover its short-term liabilities.