SkyWest Inc (SKYW)

Quick ratio

		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	US$ in thousands	227,362	177,609	141,760	179,979	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
Short-term investments	US$ in thousands	574,266	658,433	692,500	641,200	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
Receivables	US$ in thousands	122,800	112,900	106,900	89,500	82,900	136,300	123,100	120,000	100,500	94,200	97,000	89,400	65,300	—	—	—	34,500	3,557	18,915	18,945
Total current liabilities	US$ in thousands	1,429,590	1,314,170	1,323,930	1,312,300	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
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

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

SkyWest Inc's quick ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024, ranging from a low of 0.59 to a high of 0.98. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. In general, a quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.

Analyzing the trend, we observe that the quick ratio increased from 0.59 on March 31, 2020, reaching a peak of 0.98 on December 31, 2022, signaling an improvement in the company's short-term liquidity position. However, from that point, the quick ratio started declining gradually to 0.65 by December 31, 2024.

The downward trend in the quick ratio after December 31, 2022, may indicate that SkyWest Inc's ability to cover its short-term obligations with its quick assets is weakening. It is essential for stakeholders to monitor this trend closely, as a declining quick ratio may suggest potential liquidity challenges for the company in the near future. Further analysis of the company's liquidity management practices and operational efficiency may be necessary to address any emerging liquidity concerns.