Astec Industries Inc (ASTE)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 719,500 | 696,400 | 636,000 | 565,800 | 506,300 |
| Total current liabilities | US$ in thousands | 299,000 | 274,000 | 223,300 | 170,300 | 172,800 |
| Current ratio | 2.41 | 2.54 | 2.85 | 3.32 | 2.93 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $719,500K ÷ $299,000K
= 2.41
Astec Industries Inc.'s current ratio has shown a declining trend over the past five years, decreasing from 3.32 in 2019 to 2.41 in 2023. The current ratio measures the company's ability to meet short-term obligations with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting a strong liquidity position.
While the current ratio of Astec Industries Inc. has remained above 1 in all years, the decreasing trend may raise concerns about the company's ability to cover its short-term liabilities with its current assets. A higher current ratio is generally preferable as it indicates a more favorable liquidity position.
It would be advisable for stakeholders to further investigate the reasons behind the declining current ratio trend to assess the company's liquidity risk and financial health accurately.
Peer comparison
Dec 31, 2023