Commercial Metals Company (CMC)
Current ratio
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,144,160 | 3,441,470 | 2,736,830 | 2,214,100 | 2,080,000 |
| Total current liabilities | US$ in thousands | 843,714 | 1,356,990 | 980,473 | 745,263 | 694,590 |
| Current ratio | 3.73 | 2.54 | 2.79 | 2.97 | 2.99 |
August 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,144,160K ÷ $843,714K
= 3.73
The current ratio of Commercial Metals Co. has exhibited fluctuations over the past five years. The ratio stood at 3.73 as of August 31, 2023, indicating a significant increase from the previous year. This signifies that the company's current assets are 3.73 times greater than its current liabilities, reflecting a strong ability to meet short-term obligations. The ratio has demonstrated variability, with lower levels in the two preceding years, which may suggest changes in the company's liquidity position. The upward trend observed in 2023 may be indicative of improved liquidity and the potential for efficient management of short-term liabilities. However, further analysis of the components of current assets and liabilities is warranted to gain a more comprehensive understanding of the company's liquidity position.
Peer comparison
Aug 31, 2023