Sun Country Airlines Holdings Inc (SNCY)

Quick 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
Cash	US$ in thousands	46,279	26,967	86,930	71,587	92,086	131,912	212,858	272,402	309,338	275,332	310,723	269,599
Short-term investments	US$ in thousands	141,127	153,290	158,177	171,638	178,936	135,170	76,724	6,233	6,283	5,997	6,076	5,777
Receivables	US$ in thousands	38,166	42,876	26,937	35,464	35,124	31,628	38,479	31,733	30,156	31,221	25,989	25,897
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
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

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 been showing a declining trend over the recent quarters. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, decreased from 0.87 in Q4 2022 to 0.59 in Q4 2023. This may indicate a potential liquidity challenge for the company as it may have fewer liquid assets available to cover its short-term liabilities.

The quick ratio continued to decline in subsequent quarters, reaching 0.65 in Q3 2023 and 0.75 in Q2 2023, further highlighting a possible deterioration in the company's short-term liquidity position. However, it should be noted that a quick ratio above 1 indicates that the company has more liquid assets than short-term liabilities, which is generally considered a positive sign.

Overall, the decreasing trend in Sun Country Airlines Holdings Inc's quick ratio suggests a need for careful monitoring of its liquidity position and potential adjustments to ensure the company can effectively meet its short-term financial obligations.