SkyWest Inc (SKYW)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 227,362 | 148,277 | 102,984 | 258,421 | 215,723 |
| Short-term investments | US$ in thousands | 574,266 | 686,946 | 944,231 | 601,989 | 610,185 |
| Receivables | US$ in thousands | 122,800 | 82,900 | 100,500 | 65,300 | 34,500 |
| Total current liabilities | US$ in thousands | 1,429,590 | 1,254,290 | 1,172,540 | 1,194,620 | 941,722 |
| Quick ratio | 0.65 | 0.73 | 0.98 | 0.77 | 0.91 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($227,362K
+ $574,266K
+ $122,800K)
÷ $1,429,590K
= 0.65
The quick ratio is a measure of a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates that a company may have difficulty meeting its short-term liabilities.
Based on the data provided for SkyWest Inc, the quick ratio fluctuated over the past five years. In 2020, the quick ratio was 0.91, which suggests the company had almost enough liquid assets to cover its current liabilities. However, the ratio decreased to 0.77 in 2021 and further decreased to 0.73 in 2023, indicating potential liquidity challenges in those years.
It's worth noting that in 2022, the quick ratio improved to 0.98, suggesting a better ability to meet short-term obligations that year. However, the ratio dropped to 0.65 in 2024, indicating a potential decline in liquidity compared to the previous year.
Overall, the trend in SkyWest Inc's quick ratio shows some fluctuations, potentially indicating varying levels of liquidity management over the past five years. A quick ratio below 1 should be further investigated to assess the company's ability to meet its short-term financial commitments effectively.
Peer comparison
Dec 31, 2024