Benchmark Electronics Inc (BHE)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	1,504,230	1,635,750	1,652,150	1,348,140	1,202,350
Total current liabilities	US$ in thousands	649,099	713,547	749,136	654,382	481,136
Current ratio		2.32	2.29	2.21	2.06	2.50

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,504,230K ÷ $649,099K
= 2.32

The current ratio of Benchmark Electronics Inc has shown a consistent positive trend over the past five years, indicating a strong liquidity position. The current ratio decreased slightly from 2.50 in December 31, 2020, to 2.06 in December 31, 2021, but then increased steadily in the subsequent years to reach 2.32 by December 31, 2024.

A current ratio above 1 suggests that the company has more current assets than current liabilities, which is generally considered favorable as it indicates the company's ability to meet its short-term obligations. With a current ratio consistently above 2 in the recent years, Benchmark Electronics Inc appears to have a healthy liquidity position, providing a buffer to cover its short-term liabilities.

However, it's important to note that while a high current ratio indicates liquidity, it may also suggest that the company is not efficiently utilizing its current assets to generate returns. Further analysis in conjunction with other financial metrics would provide a more comprehensive view of Benchmark Electronics Inc's overall financial health and operational efficiency.