AdvanSix Inc (ASIX)

Current ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	419,804	413,731	411,155	395,168	440,928	398,356	435,913	412,463	349,854	333,082	324,750	310,077	333,503	308,563	349,919	316,464	290,537	290,252	293,313	268,885
Total current liabilities	US$ in thousands	358,918	307,954	300,143	314,960	393,492	350,656	356,344	307,252	309,822	306,140	269,105	259,482	287,037	253,162	226,324	268,680	291,726	286,668	253,727	256,702
Current ratio		1.17	1.34	1.37	1.25	1.12	1.14	1.22	1.34	1.13	1.09	1.21	1.19	1.16	1.22	1.55	1.18	1.00	1.01	1.16	1.05

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $419,804K ÷ $358,918K
= 1.17

The current ratio of AdvanSix Inc has displayed fluctuations over the past eight quarters, ranging from a low of 1.12 in Q4 2022 to a high of 1.37 in Q2 2023. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities to cover its short-term obligations.

The current ratio has shown some volatility, with Q4 2022 and Q1 2023 presenting lower ratios of 1.12 and 1.25, respectively. However, the ratios improved in the following quarters, reaching a peak of 1.37 in Q2 2023. The ratio then declined slightly to 1.34 in Q3 2023, followed by a further decrease to 1.17 in Q4 2023.

While a current ratio above 1 is generally considered healthy, the downward trend observed in the most recent quarters may warrant further investigation into the company's liquidity position and its ability to meet short-term obligations. It is essential to monitor future trends in the current ratio to assess AdvanSix Inc's liquidity and financial health accurately.