Sun Country Airlines Holdings Inc (SNCY)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Cash	US$ in thousands	46,279	92,086	309,338
Short-term investments	US$ in thousands	141,127	178,936	6,283
Receivables	US$ in thousands	38,166	35,124	30,156
Total current liabilities	US$ in thousands	418,582	377,128	281,651
Quick ratio		0.54	0.81	1.23

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($46,279K + $141,127K + $38,166K) ÷ $418,582K
= 0.54

The quick ratio of Sun Country Airlines Holdings Inc has progressively declined over the past three years, from 1.28 in 2021 to 0.87 in 2022, and further to 0.59 in 2023. This trend indicates a weakening liquidity position for the company in terms of its ability to cover immediate short-term obligations with its most liquid assets. A quick ratio below 1 suggests that the company may have difficulty meeting its short-term commitments without relying on external financing or selling its inventory at a discount. It is important for the company to closely monitor its liquidity management and take proactive measures to improve its quick ratio to ensure its financial stability and ability to weather unexpected financial challenges.