Api Group Corp (APG)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,658,000 | 2,582,000 | 2,652,000 | 2,626,000 | 1,437,000 |
| Total current liabilities | US$ in thousands | 1,885,000 | 1,807,000 | 1,921,000 | 867,000 | 841,000 |
| Current ratio | 1.41 | 1.43 | 1.38 | 3.03 | 1.71 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,658,000K ÷ $1,885,000K
= 1.41
The current ratio of Api Group Corp demonstrates fluctuating liquidity levels over the analyzed period from December 31, 2020, to December 31, 2024. At the end of 2020, the current ratio stood at 1.71, indicating that the company's current assets exceeded its current liabilities by 71%. This suggests a relatively comfortable liquidity position at that time.
In 2021, the current ratio increased substantially to 3.03, reflecting a significant improvement in the company's ability to meet its short-term obligations with current assets. This rise may be attributable to increased current assets, reduced current liabilities, or a combination of both, signaling enhanced liquidity.
However, the ratio subsequently declined sharply during 2022 to 1.38, indicating a reduction in liquidity and a narrower margin of safety for covering short-term liabilities. This decrease could result from a decline in current assets, an increase in current liabilities, or both, potentially highlighting challenges in liquidity management or operational pressures during that period.
In the following years, the current ratio remained relatively stable, with slight fluctuations: it slightly increased to 1.43 in 2023 and marginally decreased to 1.41 in 2024. These values suggest a stable but modest liquidity position, with the company's ability to cover current liabilities remaining just above a common benchmark of 1.0, which is generally considered the minimum for adequate liquidity.
Overall, the company's current ratio shows a pattern of initial growth followed by a significant decline and then stabilization at a moderate level. This trend might reflect underlying shifts in asset management, liability structure, or operational strategies, which would require further investigation to determine their causes and implications for financial health and risk management.
Peer comparison
Dec 31, 2024