Alamo Group Inc (ALG)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 803,957 | 727,210 | 612,168 | 515,540 | 570,828 |
| Total current liabilities | US$ in thousands | 213,926 | 190,506 | 192,564 | 157,295 | 162,874 |
| Current ratio | 3.76 | 3.82 | 3.18 | 3.28 | 3.50 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $803,957K ÷ $213,926K
= 3.76
The current ratio of Alamo Group Inc. has exhibited some fluctuations over the past five years. The ratio stood at 3.76 as of December 31, 2023, which decreased slightly from 3.82 in the previous year. This indicates that the company may have slightly less liquidity when comparing its current assets to current liabilities. However, the current ratio of 3.76 remains relatively strong and suggests that Alamo Group Inc. has sufficient short-term assets to cover its current liabilities.
Looking back at the trend, there was a significant increase in the current ratio from 3.18 in 2021 to 3.82 in 2022, demonstrating improved liquidity in the short term. Prior to this, the ratio was relatively stable around 3.20 and 3.50 in 2020 and 2019, respectively. The company seems to have strengthened its liquidity position between 2021 and 2022 before experiencing a slight decline in 2023.
Overall, despite the minor fluctuations in recent years, the current ratio of Alamo Group Inc. indicates a healthy liquidity position, ensuring that the company can meet its short-term obligations comfortably.
Peer comparison
Dec 31, 2023