Sun Country Airlines Holdings Inc (SNCY)

Cash 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
Cash and cash equivalents US$ in thousands 83,219 56,791 26,864 28,427 46,279 26,967 86,930 71,587 92,086 131,912 212,858 272,402 309,338
Short-term investments US$ in thousands 104,053 89,697 108,301 132,779 141,127 153,290 158,177 171,638 178,936 135,170 76,724 6,233 6,283
Total current liabilities US$ in thousands 422,290 380,824 367,339 383,567 418,582 370,875 383,255 366,368 377,128 320,689 331,361 301,476 281,651
Cash ratio 0.44 0.38 0.37 0.42 0.45 0.49 0.64 0.66 0.72 0.83 0.87 0.92 1.12

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($83,219K + $104,053K) ÷ $422,290K
= 0.44

The cash ratio of Sun Country Airlines Holdings Inc has been trending downwards over the past few quarters, indicating a decrease in its ability to cover its short-term liabilities with cash and cash equivalents. As of December 31, 2021, the cash ratio was 1.12, which means the company had $1.12 in cash and cash equivalents for every $1 of current liabilities. However, this ratio decreased to 0.44 as of December 31, 2024, suggesting a potential liquidity issue for the company.

A declining cash ratio could be a cause for concern as it may indicate that the company is relying more on other sources of liquidity to meet its short-term obligations. It is essential for Sun Country Airlines Holdings Inc to closely monitor its cash position and consider strategies to improve its liquidity, such as managing expenses, increasing cash reserves, or optimizing working capital management.