Agilent Technologies Inc (A)
Current ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,186,000 | 3,778,000 | 3,799,000 | 3,415,000 | 3,189,000 |
| Total current liabilities | US$ in thousands | 1,603,000 | 1,861,000 | 1,708,000 | 1,467,000 | 2,080,000 |
| Current ratio | 2.61 | 2.03 | 2.22 | 2.33 | 1.53 |
October 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,186,000K ÷ $1,603,000K
= 2.61
The current ratio is a key financial ratio that indicates a company's ability to meet its short-term obligations using its short-term assets. A ratio greater than 1 suggests that the company has more current assets than current liabilities, which is generally seen as a positive indicator.
Agilent Technologies Inc.'s current ratio has displayed a varying trend over the past five years. In 2019, the current ratio was 1.53, indicating that the company potentially faced some challenges in meeting its short-term obligations. However, from 2020 onwards, the current ratio improved significantly, reaching 2.61 as of October 31, 2023. This suggests an improvement in the company's liquidity and its ability to cover short-term liabilities with current assets.
The significant improvement in Agilent's current ratio indicates the company's strong liquidity position, which can be attributed to effective management of current assets and liabilities. It also indicates that Agilent has a healthy working capital and is well-positioned to meet its short-term financial obligations, such as payments to suppliers and short-term debt, thus reducing potential liquidity risks.
Overall, the increasing trend in Agilent Technologies Inc.'s current ratio reflects positively on its financial position and indicates a sound ability to manage short-term financial commitments. This may enhance investor confidence and potentially provide the company with more flexibility to pursue growth opportunities or weather economic downturns.
Peer comparison
Oct 31, 2023