Adient PLC (ADNT)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,086,000 | 4,316,000 | 4,163,000 | 5,086,000 | 4,482,000 |
| Total current liabilities | US$ in thousands | 3,678,000 | 3,738,000 | 3,501,000 | 3,511,000 | 3,819,000 |
| Current ratio | 1.11 | 1.15 | 1.19 | 1.45 | 1.17 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,086,000K ÷ $3,678,000K
= 1.11
The current ratio of Adient PLC has exhibited fluctuations over the past five years. The ratio decreased from 1.17 in 2020 to 1.11 in 2024, indicating a slight weakening in the company's ability to meet short-term obligations with current assets. In 2021, there was a significant improvement in the current ratio to 1.45, reflecting a stronger liquidity position. However, the ratio declined again in subsequent years to 1.19 in 2022 and further to 1.15 in 2023.
Overall, the downward trend in the current ratio over the years suggests that Adient PLC may be experiencing challenges in managing its short-term liquidity and meeting its current liabilities. It would be important for the company to closely monitor and potentially improve its current asset management to maintain a healthy liquidity position in the future.
Peer comparison
Sep 30, 2024