Aecom Technology Corporation (ACM)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,169,510 | 5,822,810 | 6,173,540 | 7,530,370 | 7,534,640 |
| Total current liabilities | US$ in thousands | 5,850,280 | 5,404,170 | 5,521,720 | 6,090,450 | 6,461,750 |
| Current ratio | 1.05 | 1.08 | 1.12 | 1.24 | 1.17 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,169,510K ÷ $5,850,280K
= 1.05
The current ratio measures a company's ability to meet its short-term financial obligations, indicating its liquidity and short-term solvency. A current ratio above 1 indicates that a company has more current assets than current liabilities, suggesting it can easily cover its short-term obligations.
AECOM's current ratio has been decreasing over the past five years, from 1.17 in 2019 to 1.05 in 2023. This declining trend could indicate a potential deterioration in the company's liquidity position or an increase in short-term obligations relative to current assets.
While a current ratio of 1.05 still signifies that AECOM is, theoretically, able to cover its short-term liabilities with its current assets, the decreasing trend warrants attention. It may be indicative of issues such as increasing short-term debt, declining cash reserves, or a combination of both.
Further analysis of AECOM's cash management, working capital management, and debt levels could provide insights into the factors driving this trend and help assess the company's ability to meet its short-term obligations.
Peer comparison
Sep 30, 2023