Brunswick Corporation (BC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,509,700 | 2,695,200 | 2,124,600 | 1,670,500 | 1,525,800 |
| Total current liabilities | US$ in thousands | 1,752,100 | 1,489,900 | 1,442,200 | 1,079,200 | 944,400 |
| Current ratio | 1.43 | 1.81 | 1.47 | 1.55 | 1.62 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,509,700K ÷ $1,752,100K
= 1.43
The current ratio for Brunswick Corp. has shown some fluctuations over the past five years. In 2023, the current ratio stands at 1.43, which represents a decrease from the previous year's ratio of 1.81 in 2022. However, the current ratio is still above 1, implying that the company has more current assets than current liabilities to cover its short-term obligations.
The trend in the current ratio indicates some variability in the company's liquidity position. A higher current ratio is generally considered more favorable as it suggests the company is in a better position to meet its short-term obligations without any liquidity issues. Conversely, a decreasing current ratio could indicate potential liquidity challenges if the trend continues.
It is important for stakeholders to monitor the current ratio closely to assess Brunswick Corp.'s liquidity risk and ability to meet its short-term financial obligations. Further analysis of the components contributing to current assets and liabilities would provide more insight into the company's liquidity management and financial health.
Peer comparison
Dec 31, 2023