Avient Corp (AVNT)

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	1,422,100	1,457,400	1,459,100	1,390,700	1,407,600	1,364,300	1,510,700	1,564,300	1,569,700	1,988,300	2,020,100	1,926,900	1,832,700	1,848,900	1,858,100	1,716,400	1,583,500	1,497,800	2,583,400	1,990,600
Total current liabilities	US$ in thousands	756,100	894,500	1,498,200	732,100	773,600	727,100	776,500	837,200	869,400	1,555,600	1,570,600	1,556,300	946,300	961,800	934,300	863,600	804,600	768,900	624,300	687,800
Current ratio		1.88	1.63	0.97	1.90	1.82	1.88	1.95	1.87	1.81	1.28	1.29	1.24	1.94	1.92	1.99	1.99	1.97	1.95	4.14	2.89

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,422,100K ÷ $756,100K
= 1.88

Avient Corp's current ratio has exhibited fluctuations over the past several quarters, ranging from a high of 4.14 in June 2020 to a low of 0.97 in June 2024. The current ratio compares the company's current assets to its current liabilities, serving as a measure of its short-term liquidity and ability to cover immediate obligations.

A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting a strong ability to meet short-term debt obligations. Avient Corp generally maintained a current ratio above 1 throughout the period, indicating a generally healthy liquidity position. The ratio peaked in June 2020 at 4.14, indicating a significant surplus of current assets relative to current liabilities at that point in time.

However, the current ratio experienced a downward trend in the most recent quarters, dropping to 0.97 in June 2024. This may raise concerns about the company's ability to cover its short-term liabilities with its current assets. It's important for stakeholders to monitor this ratio closely in future periods to ensure that Avient Corp maintains a healthy liquidity position.

In conclusion, while Avient Corp has generally demonstrated adequate liquidity levels based on its current ratio, the recent decline in the ratio highlights the importance of diligent financial management to ensure sufficient short-term liquidity to meet its obligations.