Sun Country Airlines Holdings Inc (SNCY)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 46,279 | 92,086 | 309,338 |
| Short-term investments | US$ in thousands | 141,127 | 178,936 | 6,283 |
| Total current liabilities | US$ in thousands | 418,582 | 377,128 | 281,651 |
| Cash ratio | 0.45 | 0.72 | 1.12 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($46,279K
+ $141,127K)
÷ $418,582K
= 0.45
The cash ratio of Sun Country Airlines Holdings Inc has shown a decreasing trend over the past three years. In 2021, the cash ratio was 1.18, indicating that the company had $1.18 in cash and cash equivalents for every $1 of current liabilities. This ratio decreased to 0.77 in 2022 and further declined to 0.50 in 2023.
A cash ratio below 1 suggests that the company may not have enough liquid assets to cover its short-term liabilities. The decreasing trend in the cash ratio may indicate potential liquidity concerns for Sun Country Airlines Holdings Inc. It is important for the company to closely monitor its cash management practices and ensure that it maintains adequate liquidity to meet its short-term obligations.
Peer comparison
Dec 31, 2023