AdvanSix Inc (ASIX)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	387,116	419,804	440,928	349,854	333,503
Total current liabilities	US$ in thousands	357,103	358,918	393,492	309,822	287,037
Current ratio		1.08	1.17	1.12	1.13	1.16

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $387,116K ÷ $357,103K
= 1.08

The current ratio of AdvanSix Inc has shown slight fluctuations over the years. It was 1.16 as of December 31, 2020, indicating that the company had $1.16 in current assets for every $1 in current liabilities. Subsequently, the ratio decreased slightly to 1.13 by December 31, 2021, and further to 1.12 by December 31, 2022. However, there was an improvement in the current ratio to 1.17 by December 31, 2023. The most recent data as of December 31, 2024, shows a decrease in the current ratio to 1.08.

While the current ratio above 1 generally suggests that the company has sufficient current assets to cover its current liabilities, the decreasing trend observed in AdvanSix Inc's current ratio over the years may raise some concerns. It is important to monitor this ratio closely to ensure that the company can meet its short-term obligations effectively.