Sun Country Airlines Holdings Inc (SNCY)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	46,279	26,967	86,930	71,587	92,086	131,912	212,858	272,402	309,338	275,332	310,723	269,599
Short-term investments	US$ in thousands	141,127	153,290	158,177	171,638	178,936	135,170	76,724	6,233	6,283	5,997	6,076	5,777
Total current liabilities	US$ in thousands	418,582	370,875	383,255	366,368	377,128	320,689	331,361	301,476	281,651	241,620	250,806	237,640
Cash ratio		0.45	0.49	0.64	0.66	0.72	0.83	0.87	0.92	1.12	1.16	1.26	1.16

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 been gradually declining over the past eight quarters, starting at 1.01 in Q1 2022 and decreasing to 0.50 in Q4 2023. This ratio measures the company's ability to cover its short-term liabilities with cash and cash equivalents.

A cash ratio above 1 indicates that the company has more cash on hand than its short-term liabilities, which is generally considered a positive sign of financial health. Sun Country's cash ratio has been consistently above 1 until Q4 2022. Since then, the ratio has been below 1, suggesting a decrease in the company's liquidity over time.

While a decreasing cash ratio may raise concerns about the company's ability to meet its short-term obligations solely with cash reserves, it is essential to consider other liquidity metrics and the overall financial performance of Sun Country Airlines Holdings Inc to understand the complete picture of its financial health and liquidity position.