Arcosa Inc (ACA)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 912,000 | 856,800 | 767,900 | 664,900 | 757,200 |
| Total current liabilities | US$ in thousands | 431,200 | 367,700 | 364,000 | 310,300 | 284,000 |
| Current ratio | 2.12 | 2.33 | 2.11 | 2.14 | 2.67 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $912,000K ÷ $431,200K
= 2.12
The current ratio of Arcosa Inc has exhibited some fluctuation over the past five years, ranging from 2.11 to 2.67. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio is generally considered favorable as it indicates that the company has a sufficient amount of current assets to cover its current liabilities.
Arcosa's current ratio peaked at 2.67 in 2019 before declining in subsequent years, reaching its lowest point at 2.11 in 2021. This decrease may raise concerns about the company's liquidity position and ability to meet short-term obligations. However, it is positive to note that the current ratio improved slightly to 2.12 in 2023.
Overall, Arcosa Inc has maintained a current ratio above 2 for the majority of the past five years, indicating a relatively strong liquidity position. However, it is essential for the company to carefully manage its current assets and liabilities to ensure continued financial stability and meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023