Crane Company (CR)
Current ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,090,800 | 1,058,700 | 1,033,800 | 1,087,800 |
| Total current liabilities | US$ in thousands | 467,100 | 415,600 | 401,100 | 380,900 |
| Current ratio | 2.34 | 2.55 | 2.58 | 2.86 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,090,800K ÷ $467,100K
= 2.34
Over the past four quarters, Crane Company's current ratio has shown a somewhat declining trend, decreasing from 2.86 in March 2023 to 2.34 in December 2023. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio is generally preferred as it indicates a healthier liquidity position.
Although Crane Company's current ratio has decreased over the period, the ratios are still above 2. This suggests that the company has more than double the current assets needed to cover its current liabilities, providing a positive indication of its short-term liquidity and ability to meet its financial obligations.
However, the decreasing trend in the current ratio warrants further investigation to understand the reasons behind it. It may be indicative of changes in the company's working capital management, such as a decrease in current assets or an increase in current liabilities. Monitoring the current ratio in conjunction with other liquidity and efficiency ratios will provide a more comprehensive view of Crane Company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023