Sun Country Airlines Holdings Inc (SNCY)

Current 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
Total current assets	US$ in thousands	271,351	260,305	302,263	325,993	345,490	337,740	363,338	349,243	375,443	346,441	371,246	328,159
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
Current ratio		0.65	0.70	0.79	0.89	0.92	1.05	1.10	1.16	1.33	1.43	1.48	1.38

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $271,351K ÷ $418,582K
= 0.65

The current ratio of Sun Country Airlines Holdings Inc has been declining over the past few quarters, from 1.16 in Q1 2022 to 0.65 in Q4 2023. This indicates that the company may be facing challenges in meeting its short-term obligations with its current assets. A current ratio below 1.0 generally suggests that the company may have difficulty in covering its short-term liabilities with its current assets alone.

The downward trend in the current ratio could be a cause for concern as it may indicate potential liquidity issues or inefficiencies in managing current assets and liabilities. It is essential for the company to closely monitor and improve its current ratio to ensure it has sufficient liquidity to meet its short-term financial obligations.