Clean Harbors Inc (CLH)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,433,800 | 2,052,220 | 2,033,760 | 1,741,170 | 1,525,720 |
| Total current liabilities | US$ in thousands | 1,102,670 | 1,037,540 | 1,020,090 | 925,314 | 636,145 |
| Current ratio | 2.21 | 1.98 | 1.99 | 1.88 | 2.40 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,433,800K ÷ $1,102,670K
= 2.21
The current ratio of Clean Harbors Inc has fluctuated over the past five years. As of December 31, 2020, the current ratio stood at 2.40, indicating that the company had $2.40 in current assets for every $1 in current liabilities. However, by December 31, 2021, the current ratio had decreased to 1.88, suggesting a potential liquidity strain as the ratio fell below 2.
Subsequently, the company improved its liquidity position as seen in the increasing trend in the current ratio over the next three years. As of December 31, 2024, Clean Harbors Inc had a current ratio of 2.21, reflecting a healthier liquidity position compared to the previous years.
Overall, while there were fluctuations in the current ratio over the years, Clean Harbors Inc managed to maintain a current ratio above 1, indicating that it had sufficient current assets to cover its current liabilities, with the ratio showing a slight improvement towards the end of the period.