Axalta Coating Systems Ltd (AXTA)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,723,000 | 2,821,000 | 2,692,700 | 2,575,600 | 2,925,900 |
| Total current liabilities | US$ in thousands | 1,354,000 | 1,428,000 | 1,384,700 | 1,334,900 | 1,180,900 |
| Current ratio | 2.01 | 1.98 | 1.94 | 1.93 | 2.48 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,723,000K ÷ $1,354,000K
= 2.01
The current ratio of Axalta Coating Systems Ltd has exhibited a steady performance over the years, ranging from 1.93 to 2.48. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities, which is a positive sign of liquidity.
In 2020, the current ratio was at a relatively healthy level of 2.48, implying a strong ability to cover short-term obligations. However, there was a slight decrease in the current ratio in 2021 to 1.93, which might indicate a tighter liquidity position or an increase in short-term liabilities relative to assets.
Subsequently, the current ratio improved slightly in 2022 to 1.94 and continued to rise in 2023 and 2024 to 1.98 and 2.01, respectively. This upward trend suggests that the company may have enhanced its liquidity position by either increasing current assets or reducing current liabilities.
Overall, while the current ratio fluctuated within a reasonable range over the years, it appears that Axalta Coating Systems Ltd has maintained a sufficient level of liquidity to meet its short-term obligations as indicated by the ratios above 1.
Peer comparison
Dec 31, 2024