YETI Holdings Inc (YETI)

YETI Holdings Inc's liquidity ratios have fluctuated over the past five years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has shown variability but generally improved from 2019 to 2023. The current ratio was 2.30 in 2023, indicating that the company had $2.30 in current assets for every $1 in current liabilities, compared to 2.12 in 2019.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also saw fluctuations over the years. In 2023, the quick ratio stood at 1.34, indicating that YETI Holdings Inc had $1.34 in liquid assets available to cover each dollar of current liabilities, a significant improvement from 0.91 in 2019.

The cash ratio, which measures a company's ability to cover short-term obligations with cash and cash equivalents, showed a similar trend to the quick ratio. YETI Holdings Inc's cash ratio increased from 0.43 in 2019 to 1.10 in 2023, suggesting a stronger ability to meet short-term liabilities solely with cash.

Overall, the liquidity ratios of YETI Holdings Inc have generally improved over the five-year period, indicating a strengthened ability to meet its short-term obligations using current assets, liquid assets, and cash. However, it is important to continue monitoring these ratios to ensure the company's liquidity position remains strong and adequate for its operating needs.

---

Additional liquidity measure

The cash conversion cycle of YETI Holdings Inc has shown significant fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 95.97 days from 119.36 days in 2022, indicating an improvement in its efficiency in converting its investments in inventory and accounts receivable into cash. This is a positive trend as a shorter cycle means the company is able to generate cash more quickly.

However, it is worth noting that the cash conversion cycle was considerably longer in 2020 compared to the other years, at 34.87 days. This suggests that the company faced challenges in managing its working capital effectively that year. Subsequently, there was a significant increase in the cash conversion cycle in 2022, which may have been a result of the company implementing strategies to improve its working capital management.

Overall, YETI Holdings Inc should continue monitoring and managing its cash conversion cycle effectively to ensure optimal utilization of its resources and maintain a healthy cash flow position.