CF Industries Holdings Inc (CF)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,050,000 | 3,673,000 | 2,593,000 | 1,367,000 | 974,000 |
| Total current liabilities | US$ in thousands | 800,000 | 995,000 | 1,432,000 | 906,000 | 665,000 |
| Current ratio | 3.81 | 3.69 | 1.81 | 1.51 | 1.46 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,050,000K ÷ $800,000K
= 3.81
The current ratio of CF Industries Holdings Inc has shown a positive trend over the past five years, indicating an improving liquidity position. The ratio has increased steadily from 1.46 in 2019 to 3.81 in 2023.
A current ratio above 1 suggests that the company has more current assets than current liabilities, with higher values reflecting stronger short-term liquidity. CF Industries Holdings Inc's current ratio has consistently been above 1 in the period under consideration, indicating that the company has been able to meet its short-term obligations comfortably.
The substantial increase in the current ratio from 1.46 in 2019 to 3.81 in 2023 signifies a significant improvement in the company's ability to cover its short-term liabilities with its current assets. This trend suggests that CF Industries Holdings Inc has been managing its working capital efficiently, potentially reducing the risk of liquidity problems in the near term.
Peer comparison
Dec 31, 2023