Sun Country Airlines Holdings Inc (SNCY)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.63 | 0.59 | 0.58 | 0.61 | 0.65 | 0.70 | 0.79 | 0.89 | 0.92 | 1.05 | 1.10 | 1.16 | 1.33 |
| Quick ratio | 0.53 | 0.48 | 0.49 | 0.52 | 0.54 | 0.60 | 0.71 | 0.76 | 0.81 | 0.93 | 0.99 | 1.03 | 1.23 |
| 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 |
Sun Country Airlines Holdings Inc's liquidity position, as represented by its key ratios, has shown a decline over the period from December 31, 2021, to December 31, 2024.
1. Current Ratio:
- The current ratio reflects the company's ability to cover its short-term obligations with its current assets.
- From December 2021 to December 2024, the current ratio decreased from 1.33 to 0.63.
- This suggests a decreasing ability to meet short-term liabilities with current assets, indicating potential liquidity challenges.
2. Quick Ratio:
- The quick ratio, a more stringent liquidity measure, factors out inventory from current assets to assess immediate liquidity.
- Sun Country's quick ratio has also shown a declining trend over the same period, from 1.23 to 0.53 by December 2024.
- This further underscores potential liquidity concerns as the company's ability to pay off short-term obligations without relying on inventory has weakened.
3. Cash Ratio:
- The cash ratio specifically assesses the company's ability to cover short-term liabilities with cash and cash equivalents only.
- Sun Country's cash ratio decreased steadily from 1.12 in December 2021 to 0.44 by December 2024.
- This continued decline indicates a diminishing ability to settle short-term obligations using readily available cash, potentially signaling liquidity strain.
Overall, the decreasing trends in Sun Country Airlines Holdings Inc's liquidity ratios raise concerns about its short-term financial health and ability to meet obligations. It may need to closely manage its liquidity position going forward to ensure stability and financial resilience.
Additional liquidity measure
| 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 conversion cycle | days | -12.07 | -7.86 | -12.32 | -14.57 | -14.35 | -10.83 | -17.35 | -15.13 | -17.11 | -12.78 | -17.03 | -17.94 | -12.40 |
The cash conversion cycle of Sun Country Airlines Holdings Inc has shown a consistent trend of negative values over the reported period, indicating strong efficiency in managing its working capital. A negative cash conversion cycle suggests that the company is able to collect cash from its customers before paying its suppliers and creditors, leading to a more efficient use of its cash resources.
The cycle has fluctuated within a narrow range, ranging from -17.94 days to -7.86 days, with the lowest value recorded on September 30, 2024. This trend indicates that Sun Country Airlines has been effective in managing its inventory, accounts receivable, and accounts payable, resulting in a quicker turnover of cash within its operations.
Overall, the consistently negative cash conversion cycle reflects Sun Country Airlines Holdings Inc's ability to swiftly convert its investments in raw materials and services into cash inflows, thereby enhancing its liquidity position and financial performance.