Spirit Airlines has a Cash Ratio of 0.58. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Spirit Airlines's Cash Ratio or its related term are showing as below:
SAVE'
s Cash Ratio Range Over the Past 10 Years
Min: 0.58 Med: 1.35 Max: 1.73
Current: 0.58
During the past 13 years, Spirit Airlines's highest Cash Ratio was 1.73. The lowest was 0.58. And the median was 1.35.
SAVE's Cash Ratio is ranked better than 51.55% of 968
companies
in the Transportation industry
Industry Median: 0.55
vs SAVE: 0.58
Spirit Airlines Cash Ratio Historical Data
The historical data trend for Spirit Airlines's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Spirit Airlines's Cash Ratio
For the Airlines subindustry, Spirit Airlines's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Spirit Airlines's Cash Ratio Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Spirit Airlines's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Spirit Airlines's Cash Ratio falls into.
Spirit Airlines Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Spirit Airlines's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Spirit Airlines (NYSE:SAVE) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Spirit Airlines Cash Ratio Related Terms
Thank you for viewing the detailed overview of Spirit Airlines's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Spirit Airlines (Spirit Airlines) Business Description
Spirit Airlines Inc serves the United States, Latin America, and Caribbean as an airline operator. It primarily offers customers unbundled base fares to strip out any unneeded travel amenities. If needed, a customer can elect for additional options at an extra charge. Flight crews are entirely interchangeable across all aircraft, and maintenance and other support services are simplified due to not having an overly complex fleet. The company has one operating segment, air transportation, owing to its system wide route structure. It may decide to expand its network if a market is underserved or overpriced. The majority of revenue is derived from the United States.
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