Alamo Group Inc (ALG)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 857,495 | 803,957 | 727,210 | 612,168 | 503,010 |
| Total current liabilities | US$ in thousands | 190,309 | 213,926 | 190,506 | 192,564 | 157,295 |
| Current ratio | 4.51 | 3.76 | 3.82 | 3.18 | 3.20 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $857,495K ÷ $190,309K
= 4.51
The current ratio of Alamo Group Inc has shown a consistent and healthy trend over the last five years, with values ranging from 3.18 to 4.51. This indicates that the company has a strong ability to cover its short-term obligations with its current assets. The current ratio well above 1 suggests that Alamo Group Inc has sufficient liquidity to meet its current liabilities comfortably. The upward trend in the current ratio from 3.18 in 2021 to 4.51 in 2024 signifies an improvement in the company's short-term financial position, reflecting effective management of current assets and liabilities. Overall, the current ratio analysis indicates that Alamo Group Inc has a solid financial health in terms of short-term liquidity.
Peer comparison
Dec 31, 2024