Carpenter Technology Corporation (CRS)

Current ratio

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Total current assets US$ in thousands 1,764,700 1,665,600 1,640,300 1,560,300 1,591,200 1,453,000 1,410,200 1,321,900 1,281,900 1,332,600 1,283,400 1,151,500 1,119,400 1,399,700 1,044,300 1,126,900 1,117,400 1,150,400 1,152,600 1,187,900
Total current liabilities US$ in thousands 483,700 444,200 432,100 406,200 466,300 453,400 485,700 448,600 459,400 544,000 510,300 410,900 375,600 633,800 294,300 332,400 306,300 269,300 265,800 264,500
Current ratio 3.65 3.75 3.80 3.84 3.41 3.20 2.90 2.95 2.79 2.45 2.51 2.80 2.98 2.21 3.55 3.39 3.65 4.27 4.34 4.49

June 30, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,764,700K ÷ $483,700K
= 3.65

The analysis of Carpenter Technology Corporation's current ratio over the period from September 2020 through June 2025 reveals a generally stable liquidity position with fluctuations that reflect the company's evolving short-term financial health.

At the outset, in September 2020, the current ratio was notably high at 4.49, indicating a robust liquidity cushion where current assets significantly exceeded current liabilities. This elevated ratio persisted through December 2020 and March 2021, with values of 4.34 and 4.27 respectively, reflecting a strong liquidity position during this period.

Subsequently, there was a downward trend commencing in June 2021, with the ratio decreasing to 3.65, and continued to decline to 3.39 in September 2021. This decline suggests a gradual reduction in liquidity surplus, potentially arising from increased utilization of current assets or a rise in current liabilities.

A modest recovery was observed towards the end of 2021, with the ratio increasing slightly to 3.55 in December 2021. However, the trend resumed a downward trajectory in early 2022, reaching a low point of 2.21 in March 2022. This marked a significant decrease, implying a closer alignment between current assets and liabilities, thereby reducing liquidity margins. This period may have been influenced by operational or strategic factors impacting the company's short-term assets or liabilities.

Following the low in March 2022, a recovery took place, with the ratio climbing to 2.98 in June 2022 and remaining in the range of approximately 2.80 to 2.95 through September 2023. These values still indicate a comfortable liquidity position, albeit notably lower than the early 2020 levels.

From the end of 2023 onwards, the current ratio continued to improve, reaching 3.20 in March 2024 and further increasing to 3.84 in September 2024. The upward trend suggests a strengthening liquidity position, possibly due to deliberate asset management strategies or fluctuations in liabilities.

By June 2025, the ratio was steady at 3.65, maintaining a solid liquidity buffer. Throughout this period, the ratio has remained well above the generally accepted threshold of 1.0, indicating that the company consistently has ample short-term assets to cover its current liabilities.

In summary, Carpenter Technology Corporation experienced a significant decrease in its current ratio from early 2021 to early 2022, reflecting a period of tightened liquidity. Since then, there has been a gradual recovery and stabilization, with the current ratio approaching prior levels, signaling an overall improvement in liquidity management. The sustained ratios well above 2.0 suggest a conservative liquidity stance, providing adequate short-term financial flexibility.