ArcBest Corp (ARCB)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 675,642 | 884,783 | 989,783 | 776,053 | 758,168 |
| Total current liabilities | US$ in thousands | 665,985 | 701,563 | 768,470 | 702,694 | 506,547 |
| Current ratio | 1.01 | 1.26 | 1.29 | 1.10 | 1.50 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $675,642K ÷ $665,985K
= 1.01
The current ratio of ArcBest Corp has shown fluctuations over the past five years. As of December 31, 2020, the current ratio was 1.50, indicating that the company had $1.50 in current assets for every dollar of current liabilities. However, by December 31, 2024, the current ratio had decreased to 1.01, suggesting a lower level of liquidity.
It is noteworthy that the current ratio dropped from 1.50 in 2020 to 1.10 in 2021, reflecting a potential strain on the company's short-term liquidity. Subsequently, there was a slight recovery in the ratio to 1.29 by the end of 2022, followed by a modest decline to 1.26 in 2023, before a significant decrease to 1.01 in 2024.
The downward trend in the current ratio from 2020 to 2024 could raise concerns about ArcBest Corp's ability to meet its short-term obligations using its current assets. It may indicate potential challenges in managing working capital or an imbalance between current assets and current liabilities. Further analysis of the company's liquidity position and operational efficiency would be necessary to better understand the reasons behind the fluctuations in the current ratio.
Peer comparison
Dec 31, 2024