Adient PLC (ADNT)

Current ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	4,074,000	4,316,000	4,406,000	4,269,000	4,087,000	4,163,000	4,062,000	4,317,000	5,091,000	5,086,000	4,114,000	4,090,000	4,496,000	4,482,000	3,459,000	4,276,000	3,799,000	4,116,000	4,253,000	3,926,000
Total current liabilities	US$ in thousands	3,548,000	3,738,000	3,720,000	3,671,000	3,418,000	3,501,000	3,387,000	3,658,000	3,742,000	3,511,000	3,631,000	3,661,000	3,584,000	3,819,000	3,083,000	4,223,000	3,683,000	3,835,000	3,963,000	4,004,000
Current ratio		1.15	1.15	1.18	1.16	1.20	1.19	1.20	1.18	1.36	1.45	1.13	1.12	1.25	1.17	1.12	1.01	1.03	1.07	1.07	0.98

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,074,000K ÷ $3,548,000K
= 1.15

The current ratio of Adient plc has shown relative stability over the past few quarters, ranging between 1.15 to 1.20. This indicates that the company has generally been able to meet its short-term financial obligations with its current assets. A current ratio above 1.0 typically suggests that a company has more than enough current assets to cover its current liabilities.

Although the current ratio has fluctuated slightly, the variations are not significant enough to raise immediate concerns about the company's liquidity position. A gradual decrease in the current ratio could signal potential issues in the future, such as difficulties in managing short-term obligations or inefficient use of current assets.

Overall, the current ratio of Adient plc appears stable and within a reasonable range, reflecting a healthy liquidity position that allows the company to meet its short-term financial commitments.