Archrock Inc (AROC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 213,157 | 231,960 | 186,570 | 182,011 | 232,203 |
| Total current liabilities | US$ in thousands | 152,143 | 148,571 | 125,254 | 111,692 | 138,743 |
| Current ratio | 1.40 | 1.56 | 1.49 | 1.63 | 1.67 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $213,157K ÷ $152,143K
= 1.40
The current ratio of Archrock Inc has exhibited a declining trend over the past five years, decreasing from 1.67 in 2019 to 1.40 in 2023. This suggests that the company's ability to meet its short-term obligations with its current assets has weakened over this period. While a current ratio above 1 indicates that the company has more current assets than current liabilities, the decreasing trend may raise concerns about the company's liquidity and ability to cover its short-term obligations. It may be beneficial for stakeholders to closely monitor this ratio and assess the company's ability to manage its current liabilities in the future.
Peer comparison
Dec 31, 2023