Commercial Metals Company (CMC)

Current ratio

		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	Aug 31, 2019	May 31, 2019
Total current assets	US$ in thousands	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	2,080,000	2,114,070
Total current liabilities	US$ in thousands	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	694,590	704,258
Current ratio		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	2.99	3.00

February 29, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,198,090K ÷ $762,547K
= 4.19

The current ratio of Commercial Metals Company has exhibited fluctuations over the periods examined. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.

Looking at the trend over the past 10 quarters, the current ratio has generally shown an upward trajectory, indicating an improvement in the company's short-term liquidity position. The ratio has consistently been above 2, indicating that the company has more than enough current assets to cover its current liabilities.

In particular, the current ratio reached its peak at 4.23 in the first quarter of 2022, reflecting a significant increase in liquidity at that point in time. However, there have been occasional dips in the ratio, such as in the third quarter of 2022, where it dropped to 2.54, although it quickly rebounded in subsequent quarters.

The most recent current ratio of 4.19 as of February 29, 2024, suggests that Commercial Metals Company is in a healthy financial position with ample short-term liquidity to meet its obligations. However, it is important for investors and stakeholders to continue monitoring the current ratio alongside other financial indicators to assess the company's overall financial health and performance.