Church & Dwight Company Inc (CHD)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,529,700 | 1,395,900 | 1,233,400 | 1,112,400 | 956,400 |
| Total current liabilities | US$ in thousands | 1,422,000 | 1,183,800 | 2,075,200 | 1,388,600 | 1,092,300 |
| Current ratio | 1.08 | 1.18 | 0.59 | 0.80 | 0.88 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,529,700K ÷ $1,422,000K
= 1.08
The current ratio of Church & Dwight Co., Inc. has fluctuated over the past five years, ranging from 0.59 in 2021 to 1.18 in 2022. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A ratio below 1 indicates that the company may have difficulty meeting its short-term obligations, while a ratio above 1 suggests that the company can comfortably cover these obligations.
In 2021, the current ratio was low at 0.59, indicating a potential liquidity issue where the company's current liabilities exceeded its current assets significantly. This could raise concerns about the company's ability to meet its short-term obligations.
The ratio improved in 2022 to 1.18, showing a substantial increase from the previous year. This indicates that the company had a more comfortable position in meeting its short-term liabilities with its current assets. However, it is important to note that a very high current ratio may also indicate that the company is not efficiently utilizing its current assets to generate revenue.
In 2023, the current ratio decreased to 1.08, although it remained above 1, indicating that the company could still cover its short-term obligations with its current assets. It is essential to monitor the current ratio over time to assess the company's liquidity position and its ability to manage short-term financial commitments effectively.
Peer comparison
Dec 31, 2023