Sun Country Airlines Holdings Inc (SNCY)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Total current assets	US$ in thousands	266,584	271,351	345,490	375,443
Total current liabilities	US$ in thousands	422,290	418,582	377,128	281,651
Current ratio		0.63	0.65	0.92	1.33

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $266,584K ÷ $422,290K
= 0.63

The current ratio of Sun Country Airlines Holdings Inc has shown a declining trend over the past four years. As of December 31, 2021, the current ratio stood at 1.33, indicating that the company had $1.33 in current assets for every $1 in current liabilities, reflecting a relatively strong liquidity position. However, this ratio decreased to 0.92 by December 31, 2022, suggesting a decline in the company's ability to meet its short-term obligations with its current assets.

Further deterioration in the current ratio was observed in the subsequent years, with the ratio dropping to 0.65 as of December 31, 2023, and declining further to 0.63 by December 31, 2024. These decreasing values signal a potential liquidity strain for Sun Country Airlines Holdings Inc, as the company may face challenges in covering its short-term obligations with its current assets in the future.

Overall, the downward trend in the current ratio indicates a weakening liquidity position for the company, which may require closer monitoring and management of working capital to ensure financial stability and meet its short-term obligations effectively.