The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Columbia Sportswear Co's quick ratio for the quarter that ended in Dec. 2023 was 2.13.
Columbia Sportswear Co has a quick ratio of 2.13. It generally indicates good short-term financial strength.
The historical rank and industry rank for Columbia Sportswear Co's Quick Ratio or its related term are showing as below:
COLM'
s Quick Ratio Range Over the Past 10 Years
Min: 1.5 Med: 2.17 Max: 2.63
Current: 2.13
During the past 13 years, Columbia Sportswear Co's highest Quick Ratio was 2.63. The lowest was 1.50. And the median was 2.17.
Columbia Sportswear Co Quick Ratio Historical Data
The historical data trend for Columbia Sportswear Co's Quick 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.
For the Apparel Manufacturing subindustry, Columbia Sportswear Co's Quick Ratio, along with its competitors' market caps and Quick 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.
Columbia Sportswear Co Quick Ratio Distribution
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Columbia Sportswear Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Columbia Sportswear Co's Quick Ratio falls into.
Columbia Sportswear Co Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Columbia Sportswear Co's Quick 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.
Columbia Sportswear Co (NAS:COLM) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Columbia Sportswear Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Columbia Sportswear Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Columbia Sportswear Co (Columbia Sportswear Co) Business Description
Columbia Sportswear Co makes outdoor and active-lifestyle apparel, footwear, equipment, and accessories that it sells under four primary brands: Columbia, Sorel, Mountain Hardwear, and prAna. The majority of sales are in the United States, but the company also has remarkable sales in its three other geographic segments: Latin American and Asia-Pacific; Europe, Middle East, and Africa; and Canada. The majority of sales are through wholesale channels, including sporting goods and department stores, but the company also operates its own branded stores in each of its geographic segments. Columbia sources products from around the world and uses contract manufacturers outside the United States, predominantly in Asia, to manufacture its products.
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