Commercial Metals Company (CMC)

Current ratio

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Total current assets	US$ in thousands	3,292,770	3,239,630	3,198,090	3,243,830	3,144,160	3,141,640	3,278,150	3,224,110	3,441,470	3,443,570	3,490,250	2,786,380	2,736,830	2,518,480	2,205,640	2,169,200	2,214,100	2,144,990	2,084,980	2,014,580
Total current liabilities	US$ in thousands	834,850	764,954	762,547	786,955	843,714	852,944	1,066,150	1,077,550	1,356,990	1,390,690	825,201	892,120	980,473	853,367	674,093	613,199	745,263	627,343	649,134	601,964
Current ratio		3.94	4.24	4.19	4.12	3.73	3.68	3.07	2.99	2.54	2.48	4.23	3.12	2.79	2.95	3.27	3.54	2.97	3.42	3.21	3.35

August 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,292,770K ÷ $834,850K
= 3.94

Commercial Metals Company's current ratio has been relatively stable over the past few years, ranging from a low of 2.48 to a high of 4.24. This ratio indicates the company's ability to cover its short-term obligations with its current assets. Generally, a current ratio above 2 is considered healthy and indicates that the company can meet its short-term liabilities comfortably.

The current trend in Commercial Metals Company's current ratio shows an improving liquidity position, as the ratio has generally been increasing over the last few quarters. This suggests that the company's current assets have been increasing at a faster rate than its current liabilities, which is a positive indicator of financial health.

However, it is important to note that a very high current ratio, such as seen in some periods for Commercial Metals Company, could potentially indicate that the company is not efficiently utilizing its current assets or may have excess cash that is not being put to productive use. A very high current ratio could also indicate that the company is not effectively managing its inventory or accounts receivable.

Overall, based on the historical data provided, Commercial Metals Company's current ratio appears to be at a healthy level, indicating a strong ability to meet its short-term obligations.