American Axle & Manufacturing (AXL)

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	2,006,600	2,139,200	2,109,600	2,004,500	1,993,400	2,055,500	2,055,800	2,040,900	1,856,000	1,822,000	1,950,500	1,982,400	1,877,000	1,912,600	1,961,500	2,043,100	1,857,800	2,198,200	1,976,700	2,038,900
Total current liabilities	US$ in thousands	1,201,600	1,248,700	1,233,600	1,198,000	1,199,300	1,214,300	1,213,700	1,153,700	1,039,900	1,003,200	1,152,100	1,042,100	979,300	1,024,300	1,260,300	1,218,700	1,026,400	1,237,100	1,267,100	1,391,500
Current ratio		1.67	1.71	1.71	1.67	1.66	1.69	1.69	1.77	1.78	1.82	1.69	1.90	1.92	1.87	1.56	1.68	1.81	1.78	1.56	1.47

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,006,600K ÷ $1,201,600K
= 1.67

The current ratio of American Axle & Manufacturing Holdings Inc has been relatively stable over the past eight quarters, ranging from 1.66 to 1.77. The company's current ratio indicates that it has more than sufficient current assets to cover its current liabilities. A higher current ratio is generally considered favorable as it suggests a stronger liquidity position and ability to meet short-term obligations.

Although the current ratio has fluctuated slightly from quarter to quarter, it has consistently remained above 1.5, which is typically considered the benchmark for a healthy liquidity position. This indicates that American Axle & Manufacturing Holdings Inc is able to easily cover its short-term obligations using its current assets.

Overall, the trend in the current ratio over the past eight quarters reflects a stable and strong liquidity position for American Axle & Manufacturing Holdings Inc, which suggests the company has the ability to meet its short-term financial obligations comfortably.