Sun Country Airlines Holdings Inc (SNCY)
Liquidity ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.54 | 0.60 | 0.71 | 0.76 | 0.81 | 0.93 | 0.99 | 1.03 | 1.23 | 1.29 | 1.37 | 1.27 |
| 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 |
The liquidity ratios of Sun Country Airlines Holdings Inc have shown a decreasing trend over the past eight quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has declined from 1.16 in Q1 2022 to 0.65 in Q4 2023. This suggests that the company may be facing challenges in managing its short-term liquidity.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also decreased from 1.11 in Q1 2022 to 0.59 in Q4 2023. This indicates that Sun Country Airlines Holdings Inc may have limited ability to cover its immediate liabilities with its most liquid assets.
Furthermore, the cash ratio, which focuses solely on the company's ability to pay off short-term liabilities with cash and cash equivalents, has shown a downward trend from 1.01 in Q1 2022 to 0.50 in Q4 2023. This suggests that the company's cash position has weakened over the quarters.
Overall, the decreasing trend in these liquidity ratios indicates potential liquidity challenges for Sun Country Airlines Holdings Inc, which may require management attention to ensure the company can meet its short-term financial obligations effectively.
Additional liquidity measure
| 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 conversion cycle | days | -14.35 | -10.83 | -17.35 | -15.13 | -17.11 | -12.78 | -17.03 | -17.94 | -12.40 |
The cash conversion cycle for Sun Country Airlines Holdings Inc has fluctuated over the periods provided. In Q2 2023, the company's cash conversion cycle was at its most efficient level, with only 9.79 days required to convert inputs into cash. This was an improvement compared to the prior quarter's performance. However, in Q3 2022 and Q2 2022, the cash conversion cycle increased significantly, indicating a longer period to convert inputs into cash, possibly due to operational inefficiencies or other factors impacting the company's cash flow. Overall, monitoring the cash conversion cycle closely is essential for Sun Country Airlines Holdings Inc to optimize its working capital management and enhance its financial performance.