Axalta Coating Systems Ltd (AXTA)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,821,300 | 2,692,700 | 2,575,600 | 2,925,900 | 2,573,400 |
| Total current liabilities | US$ in thousands | 1,427,500 | 1,384,700 | 1,334,900 | 1,180,900 | 1,072,900 |
| Current ratio | 1.98 | 1.94 | 1.93 | 2.48 | 2.40 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,821,300K ÷ $1,427,500K
= 1.98
The current ratio of Axalta Coating Systems Ltd has exhibited fluctuations over the past five years. The ratio was highest in 2020 at 2.48, indicating that the company had $2.48 in current assets for every $1 in current liabilities. This suggests a strong liquidity position. However, in the subsequent years, the current ratio decreased slightly to 2.40 in 2019, and further declined to 1.93 in 2021, and 1.94 in 2022. The current ratio improved in 2023 to 1.98 but remains below the 2020 peak.
Overall, the current ratio indicates that the company has generally been able to meet its short-term obligations with its current assets, but there may have been some fluctuations in its liquidity position over the years. It is important for Axalta Coating Systems Ltd to continue monitoring and managing its current assets and liabilities effectively to ensure sufficient liquidity for ongoing operations and financial stability.
Peer comparison
Dec 31, 2023