Autoliv Inc (ALV)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,974,000 | 3,714,000 | 3,675,000 | 4,269,000 | 3,002,100 |
| Total current liabilities | US$ in thousands | 4,035,000 | 3,642,000 | 2,821,000 | 3,147,000 | 2,410,200 |
| Current ratio | 0.98 | 1.02 | 1.30 | 1.36 | 1.25 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,974,000K ÷ $4,035,000K
= 0.98
The current ratio of Autoliv Inc. has been fluctuating over the past five years, starting at 1.25 in 2019, increasing to 1.36 in 2020, and then consistently declining to 1.30 in 2021, 1.02 in 2022, and further down to 0.98 in 2023. The downward trend in the current ratio indicates a potential weakening in the company's ability to cover its short-term liabilities with its current assets. A current ratio below 1.0 suggests that the company may have difficulties meeting its short-term obligations with its current resources. Autoliv Inc. should closely monitor its liquidity position and take appropriate measures to improve its current ratio to ensure financial stability in the short term.
Peer comparison
Dec 31, 2023