American Axle & Manufacturing (AXL)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,914,800 | 2,006,600 | 1,993,400 | 1,856,000 | 1,877,000 |
| Total current liabilities | US$ in thousands | 1,175,200 | 1,201,600 | 1,199,300 | 1,039,900 | 979,300 |
| Current ratio | 1.63 | 1.67 | 1.66 | 1.78 | 1.92 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,914,800K ÷ $1,175,200K
= 1.63
American Axle & Manufacturing's current ratio has exhibited a gradual decline over the years, from 1.92 as of December 31, 2020, to 1.63 as of December 31, 2024. The current ratio indicates the company's ability to meet its short-term obligations with its current assets. Although the current ratio has decreased, it still remains above 1, indicating that the company possesses sufficient current assets to cover its current liabilities. However, the decreasing trend suggests a potential weakening liquidity position over time, which may warrant further monitoring to ensure the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2024