Commercial Metals Company (CMC)
Current ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,292,770 | 3,144,160 | 3,441,470 | 2,736,830 | 2,214,100 |
| Total current liabilities | US$ in thousands | 834,850 | 843,714 | 1,356,990 | 980,473 | 745,263 |
| Current ratio | 3.94 | 3.73 | 2.54 | 2.79 | 2.97 |
August 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,292,770K ÷ $834,850K
= 3.94
The current ratio of Commercial Metals Company has shown a generally positive trend over the past five years. The ratio increased from 2.97 in 2020 to 3.94 in 2024, indicating an improvement in the company's short-term liquidity position. This means that the company had $3.94 in current assets for every $1 of current liabilities in 2024, compared to $2.97 in 2020.
The trend reflects the company's ability to meet its short-term financial obligations with its current assets. The higher current ratio in 2024 suggests that Commercial Metals Company has strengthened its ability to cover its short-term liabilities, which may indicate improved financial health and stability.
Overall, the increasing current ratio demonstrates a positive liquidity position for Commercial Metals Company, providing some assurance to creditors, investors, and other stakeholders regarding the company's ability to meet its short-term obligations.
Peer comparison
Aug 31, 2024