Archrock Inc (AROC)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	233,122	213,157	231,960	186,570	182,011
Total current liabilities	US$ in thousands	188,604	152,143	148,571	125,254	111,692
Current ratio		1.24	1.40	1.56	1.49	1.63

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $233,122K ÷ $188,604K
= 1.24

Based on the provided data, Archrock Inc's current ratio has shown some fluctuation over the past five years. The current ratio is a measure of a company's ability to meet its short-term obligations with its current assets.

At the end of 2020, the current ratio was 1.63, indicating that the company had $1.63 in current assets for every $1 of current liabilities. However, by the end of 2021, the current ratio decreased to 1.49, suggesting a slight decline in liquidity.

In 2022, the current ratio slightly improved to 1.56, indicating a better ability to cover short-term obligations. However, by the end of 2023, the current ratio dropped to 1.40, which may raise concerns about the company's liquidity position.

At the end of 2024, the current ratio further decreased to 1.24, indicating a potential strain on the company's ability to meet its short-term liabilities with its current assets. Overall, the trend in the current ratio over the past five years suggests some variability in Archrock Inc's liquidity position, with a general downward trajectory in recent years. This may warrant further investigation into the company's working capital management and financial health.