The Andersons Inc (ANDE)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,806,960 | 3,465,950 | 3,372,330 | 2,416,410 | 1,945,340 |
| Total current liabilities | US$ in thousands | 1,636,330 | 2,521,320 | 2,463,930 | 1,931,680 | 1,439,920 |
| Current ratio | 1.72 | 1.37 | 1.37 | 1.25 | 1.35 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,806,960K ÷ $1,636,330K
= 1.72
The current ratio of Andersons Inc. has fluctuated over the last five years, ranging from 1.25 in 2020 to 1.72 in 2023. A current ratio above 1 indicates that the company has more current assets than current liabilities, which suggests a healthy liquidity position.
In 2023, the current ratio increased to 1.72, which may indicate that Andersons Inc. has improved its ability to meet its short-term obligations with its current assets. This suggests that the company may have increased its current asset base or reduced its current liabilities, or a combination of both.
Conversely, in 2020, the current ratio dropped to 1.25, which may indicate a temporary liquidity strain. A lower current ratio could suggest that the company might struggle to meet its short-term obligations with its current assets.
Overall, while the current ratio of Andersons Inc. fluctuated over the years, it is important to consider the trend over time to assess the company's liquidity position effectively. A consistent improvement in the current ratio could indicate strengthening liquidity, while a declining trend may raise concerns about the company's ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023