Smith AO Corporation (AOS)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,392,900 | 1,412,500 | 1,481,300 | 1,461,500 | 1,500,300 | 1,504,500 | 1,561,300 | 1,643,800 | 1,633,700 | 1,569,600 | 1,631,200 | 1,721,400 | 1,752,600 | 1,738,100 | 1,585,700 | 1,558,200 | 1,618,000 | 1,430,300 | 1,444,400 | 1,442,500 |
| Total current liabilities | US$ in thousands | 897,200 | 844,200 | 872,400 | 883,400 | 945,300 | 895,600 | 860,700 | 895,700 | 934,200 | 900,900 | 928,300 | 1,002,100 | 1,118,800 | 982,600 | 907,000 | 836,100 | 886,300 | 805,900 | 735,400 | 699,100 |
| Current ratio | 1.55 | 1.67 | 1.70 | 1.65 | 1.59 | 1.68 | 1.81 | 1.84 | 1.75 | 1.74 | 1.76 | 1.72 | 1.57 | 1.77 | 1.75 | 1.86 | 1.83 | 1.77 | 1.96 | 2.06 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,392,900K ÷ $897,200K
= 1.55
Smith AO Corporation's current ratio has shown some fluctuations over the past few years. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.
Analyzing the data provided, we can see that the current ratio ranged from a high of 2.06 on March 31, 2020, to a low of 1.55 on December 31, 2024. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities, which is considered a positive indication of financial health.
The current ratio decreased from 2.06 on March 31, 2020, to 1.55 on December 31, 2024. This downward trend could potentially signal that the company's ability to cover its short-term obligations with its current assets weakened over the period.
It is essential for stakeholders to carefully monitor the current ratio over time to assess the company's liquidity position and ability to meet its short-term obligations. In the case of Smith AO Corporation, the declining trend in the current ratio may warrant further investigation into the company's liquidity management and potential impact on its financial stability.
Peer comparison
Dec 31, 2024