Clearwater Paper Corporation (CLW)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 564,100 | 586,300 | 487,200 | 474,900 | 465,800 |
| Total current liabilities | US$ in thousands | 286,000 | 312,000 | 254,100 | 244,800 | 280,400 |
| Current ratio | 1.97 | 1.88 | 1.92 | 1.94 | 1.66 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $564,100K ÷ $286,000K
= 1.97
The current ratio of Clearwater Paper Corp has shown a generally positive trend over the past five years, increasing from 1.66 in 2019 to 1.97 in 2023. This indicates that the company's ability to meet its short-term obligations with its current assets has improved over time.
A current ratio above 1 implies that Clearwater Paper Corp has more current assets than current liabilities, suggesting a healthy liquidity position. In this case, the company has a sufficient cushion to cover its short-term obligations.
However, it is worth noting that the current ratio fluctuated slightly between 1.88 and 1.94 in the years 2020 to 2022 before reaching its highest point in 2023. This variability may indicate changes in the company's working capital management or shifts in its current asset and liability composition.
Overall, the company's current ratio of 1.97 in 2023 reflects a strong liquidity position, providing Clearwater Paper Corp with the flexibility to meet its short-term financial obligations effectively.