Astec Industries Inc (ASTE)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 722,800 | 719,500 | 696,400 | 641,700 | 565,800 |
| Total current liabilities | US$ in thousands | 271,700 | 299,000 | 274,000 | 225,300 | 170,300 |
| Current ratio | 2.66 | 2.41 | 2.54 | 2.85 | 3.32 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $722,800K ÷ $271,700K
= 2.66
The current ratio of Astec Industries Inc has exhibited a gradual decline over the past five years, with reported values of 3.32 as of December 31, 2020, decreasing to 2.85 by December 31, 2021, and further dropping to 2.54 by December 31, 2022. By December 31, 2023, the ratio stood at 2.41 before showing a slight improvement to 2.66 by December 31, 2024.
A current ratio above 1 indicates that the company can meet its short-term obligations using its current assets. Astec's current ratio has remained above 1 throughout the period, suggesting a healthy liquidity position. However, the decreasing trend in the current ratio may indicate a potential liquidity risk in the company, as the ability to cover short-term liabilities with current assets has weakened over time.
Further analysis of the components contributing to current assets and liabilities would provide additional insights into the company's liquidity management and working capital efficiency. Overall, monitoring and managing the current ratio will be crucial for Astec Industries Inc to ensure sustainable operations and financial stability in the future.
Peer comparison
Dec 31, 2024