Smith AO Corporation (AOS)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,392,900 | 1,500,300 | 1,633,700 | 1,752,600 | 1,618,000 |
| Total current liabilities | US$ in thousands | 897,200 | 945,300 | 934,200 | 1,118,800 | 886,300 |
| Current ratio | 1.55 | 1.59 | 1.75 | 1.57 | 1.83 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,392,900K ÷ $897,200K
= 1.55
The current ratio of Smith AO Corporation has displayed some fluctuations over the past five years. As of December 31, 2020, the current ratio stood at 1.83, indicating that the company had $1.83 in current assets for every $1 in current liabilities. Subsequently, the ratio decreased to 1.57 by December 31, 2021, suggesting a potential liquidity strain. However, there was a recovery in the following year, with the current ratio increasing to 1.75 by December 31, 2022.
Nonetheless, the ratio dipped again to 1.59 by December 31, 2023, indicating a potential liquidity challenge. This trend continued into the most recent period, with the current ratio further decreasing to 1.55 by December 31, 2024, which may raise concerns about the company's ability to meet its short-term obligations.
Overall, the fluctuating current ratio of Smith AO Corporation over the past five years suggests a varying liquidity position that requires close monitoring to ensure the company can effectively manage its short-term liabilities.
Peer comparison
Dec 31, 2024