Archrock Inc (AROC)

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	233,122	244,681	204,174	193,706	213,157	224,877	223,568	210,623	231,960	220,284	217,035	196,384	186,570	186,706	187,855	188,310	182,011	211,700	208,889	223,744
Total current liabilities	US$ in thousands	188,604	194,661	133,192	153,246	152,143	159,375	142,097	177,101	148,571	194,330	151,529	168,310	125,254	153,423	125,550	134,733	111,692	136,324	120,079	157,145
Current ratio		1.24	1.26	1.53	1.26	1.40	1.41	1.57	1.19	1.56	1.13	1.43	1.17	1.49	1.22	1.50	1.40	1.63	1.55	1.74	1.42

December 31, 2024 calculation

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

The current ratio of Archrock Inc, a measure of its short-term liquidity and ability to meet current liabilities, has fluctuated over the past few years. The ratio ranged from a low of 1.13 as of September 30, 2022, to a high of 1.74 as of June 30, 2020. Generally, a current ratio below 1 indicates potential financial difficulties in meeting short-term obligations, while a ratio above 1 signifies good liquidity.

Although the current ratio showed some variability, it generally stayed within a reasonable range, with values mostly hovering around 1.4 to 1.6 during the last few reporting periods. This suggests that Archrock Inc has maintained an adequate level of current assets relative to current liabilities to cover its short-term obligations. Monitoring the current ratio going forward will be crucial to assess the company's ability to manage its short-term liquidity effectively.