Sun Country Airlines Holdings Inc (SNCY)

Quick ratio

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 US$ in thousands 83,219 56,791 26,864 28,427 46,279 26,967 86,930 71,587 92,086 131,912 212,858 272,402 309,338
Short-term investments US$ in thousands 104,053 89,697 108,301 132,779 141,127 153,290 158,177 171,638 178,936 135,170 76,724 6,233 6,283
Receivables US$ in thousands 35,296 37,806 44,635 37,525 38,166 42,876 26,937 35,464 35,124 31,628 38,479 31,733 30,156
Total current liabilities US$ in thousands 422,290 380,824 367,339 383,567 418,582 370,875 383,255 366,368 377,128 320,689 331,361 301,476 281,651
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

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($83,219K + $104,053K + $35,296K) ÷ $422,290K
= 0.53

The quick ratio of Sun Country Airlines Holdings Inc has shown a declining trend from 1.23 as of December 31, 2021, to 0.53 as of December 31, 2024. A quick ratio above 1 usually indicates that a company has enough liquid assets to cover its short-term liabilities. However, as the quick ratio for Sun Country Airlines Holdings Inc has consistently decreased over the period, it suggests a diminishing ability to meet its short-term obligations with its most liquid assets.

The decreasing trend in the quick ratio may raise concerns about the company's liquidity position and its ability to cover immediate financial obligations without relying on selling inventory or obtaining additional financing. It is essential for stakeholders to closely monitor this trend and assess the company's ability to maintain adequate liquidity in the future to meet its short-term financial commitments.