YETI Holdings Inc (YETI)
Liquidity ratios
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.30 | 2.19 | 2.09 | 1.99 | 1.76 | 2.34 | 1.83 | 1.82 | 1.91 | 1.92 | 1.85 | 1.84 | 1.66 | 2.07 | 2.80 | 2.66 | 2.12 | 1.65 | 1.58 | 1.54 |
| Quick ratio | 1.34 | 1.13 | 1.03 | 0.51 | 0.77 | 0.28 | 0.24 | 0.29 | 1.04 | 0.79 | 0.77 | 0.75 | 0.88 | 1.07 | 0.97 | 0.79 | 0.43 | 0.17 | 0.19 | 0.11 |
| Cash ratio | 1.10 | 0.78 | 0.65 | 0.51 | 0.57 | 0.28 | 0.24 | 0.29 | 0.77 | 0.79 | 0.77 | 0.75 | 0.88 | 1.07 | 0.97 | 0.79 | 0.43 | 0.17 | 0.19 | 0.11 |
The liquidity ratios of YETI Holdings Inc show varying levels of liquidity over the past few quarters. The current ratio, which measures the company's ability to meet short-term obligations with current assets, has generally improved from 1.54 at the end of September 2019 to 2.30 at the end of December 2023. This indicates that YETI has increased its ability to cover its short-term liabilities with its current assets.
On the other hand, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has fluctuated significantly over the same period, ranging from 0.11 at the end of September 2020 to 1.34 at the end of December 2023. This suggests that YETI has had challenges in maintaining an optimal level of liquid assets to cover its short-term liabilities without relying on inventory.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, has also shown variability, improving from 0.11 at the end of September 2020 to 1.10 at the end of December 2023. This indicates that YETI has made progress in bolstering its cash position to meet immediate obligations without relying on other current assets.
Overall, while the current ratio has generally improved over the period under review, the quick ratio and cash ratio have shown more fluctuations, suggesting that YETI may need to focus on managing its liquid assets more effectively to ensure consistent liquidity levels in the future.
Additional liquidity measure
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 95.97 | 104.20 | 109.66 | 107.36 | 119.36 | 156.35 | 152.65 | 142.02 | 106.59 | 65.40 | 53.08 | 48.24 | 13.00 | 26.75 | 81.54 | 105.77 | 84.82 | 90.82 |
The cash conversion cycle for YETI Holdings Inc has shown fluctuations over the past quarters. The cycle represents the average number of days it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
The company experienced a peak in its cash conversion cycle in the third quarter of 2022, with a cycle of 156.35 days, possibly indicating challenges in inventory management or payment collection. Subsequently, there was a significant improvement in the first quarter of 2021, with a cycle of only 13 days, suggesting a more efficient use of working capital and faster cash conversion.
Overall, YETI Holdings Inc has shown variability in its cash conversion cycle, with some quarters indicating more efficient operations and others showing room for improvement, particularly in managing inventory levels and collecting payments promptly to optimize the cash flow cycle.