SkyWest Inc (SKYW)
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 | 0.78 | 0.86 | 0.84 | 0.81 | 0.90 | 0.96 | 1.01 | 1.09 | 1.17 | 1.09 | 1.02 | 0.94 | 0.89 | 0.96 | 1.02 | 1.05 | 1.04 | 1.14 | 0.96 | 0.75 |
| Quick ratio | 0.65 | 0.72 | 0.71 | 0.69 | 0.73 | 0.79 | 0.85 | 0.92 | 0.98 | 0.95 | 0.89 | 0.83 | 0.77 | 0.80 | 0.86 | 0.88 | 0.91 | 0.96 | 0.79 | 0.59 |
| Cash ratio | 0.56 | 0.64 | 0.63 | 0.63 | 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 |
SkyWest Inc's liquidity ratios show variations over the reporting periods. The current ratio fluctuated, indicating the company's ability to cover short-term obligations with its current assets. It improved from 0.75 on March 31, 2020, to a peak of 1.17 on December 31, 2022, before declining to 0.78 on December 31, 2024.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventories from current assets, followed a similar trend. It ranged from 0.59 on March 31, 2020, to 0.65 on December 31, 2024, with fluctuations in between.
The cash ratio, which measures the ability to cover current liabilities with the cash and cash equivalents on hand, also showed variability. It ranged from 0.57 on March 31, 2020, to 0.56 on December 31, 2024, with fluctuations in between.
Overall, while SkyWest Inc's liquidity ratios varied, maintaining a current ratio above 1 indicates that the company generally had sufficient current assets to cover its short-term obligations throughout the reporting periods. However, the declining trend in some ratios towards the end of the period may warrant further monitoring to ensure the company's ability to meet its short-term obligations remains intact.
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 | 47.52 | -71.59 | -80.02 | -85.17 | -84.69 | -74.68 | -71.43 | -73.35 | -69.82 | -73.13 | -88.20 | -54.95 | -61.30 | -44.37 | -25.09 | -29.90 | -17.32 | -18.20 | -22.62 | -28.68 |
The cash conversion cycle of SkyWest Inc has seen fluctuations over the past few years. The company has maintained negative cash conversion cycles, indicating that it is efficient in converting its investments in inventory and other resources into cash inflows.
From March 2020 to June 2020, the cash conversion cycle decreased, indicating an improvement in managing its working capital. However, from June 2020 to December 2020, there was a slight increase in the cycle, which could suggest a temporary delay in converting sales into cash.
A significant decrease was observed in the cash conversion cycle from December 2020 to March 2021, followed by a fluctuating trend in the subsequent quarters. Notably, from June 2022 to December 2024, the company's cash conversion cycle remained negative, showing its efficient management of working capital to generate cash inflows.
The sharp increase in the cash conversion cycle observed at the end of 2024 might raise some concerns about the company's ability to efficiently convert its investments into cash. Further analysis is recommended to understand the reasons behind this change and to assess its potential impact on SkyWest Inc's financial performance.