Axalta Coating Systems Ltd (AXTA)
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 | 2,723,000 | 2,838,000 | 3,014,000 | 2,760,000 | 2,821,000 | 2,785,800 | 2,689,600 | 2,623,900 | 2,692,700 | 2,668,400 | 2,578,000 | 2,516,300 | 2,575,600 | 2,513,800 | 3,048,200 | 2,890,800 | 2,925,900 | 2,850,300 | 2,480,200 | 2,189,300 |
| Total current liabilities | US$ in thousands | 1,354,000 | 1,422,000 | 1,335,000 | 1,332,000 | 1,428,000 | 1,358,300 | 1,329,200 | 1,279,700 | 1,384,700 | 1,349,700 | 1,333,400 | 1,345,000 | 1,334,900 | 1,276,600 | 1,216,200 | 1,190,100 | 1,180,900 | 1,065,200 | 860,900 | 1,007,200 |
| Current ratio | 2.01 | 2.00 | 2.26 | 2.07 | 1.98 | 2.05 | 2.02 | 2.05 | 1.94 | 1.98 | 1.93 | 1.87 | 1.93 | 1.97 | 2.51 | 2.43 | 2.48 | 2.68 | 2.88 | 2.17 |
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 shown some fluctuations over the past few years. Initially, the ratio improved from 2.17 in March 2020 to a high of 2.88 in June 2020, indicating a strong ability to cover short-term liabilities with current assets. However, the ratio decreased to 1.93 by June 2022 before slightly recovering to 2.07 in March 2024.
Overall, the company has generally maintained a current ratio above 2, which is considered healthy as it suggests the company has more than enough current assets to cover its short-term obligations. However, the slight decline in the ratio in recent years may indicate potential liquidity challenges or changes in the company's working capital management.
It is important to monitor the current ratio closely in the future to ensure that Axalta Coating Systems Ltd maintains a healthy liquidity position to meet its short-term financial obligations efficiently.
Peer comparison
Dec 31, 2024