Dana Inc (DAN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,103,000 | 3,829,000 | 3,586,000 | 3,288,000 | 3,162,000 |
| Total current liabilities | US$ in thousands | 2,602,000 | 2,479,000 | 2,174,000 | 1,941,000 | 1,845,000 |
| Current ratio | 1.58 | 1.54 | 1.65 | 1.69 | 1.71 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,103,000K ÷ $2,602,000K
= 1.58
The current ratio of Dana Inc has exhibited a declining trend over the past five years, decreasing from 1.71 in 2019 to 1.58 in 2023. This indicates that the company's short-term liquidity position has weakened slightly over this period.
While the current ratio of 1.58 in 2023 is considered reasonable, as it indicates that the company has $1.58 in current assets for every $1 in current liabilities, it is important to note that a higher current ratio is typically desired as it suggests a stronger ability to meet short-term obligations.
Overall, the current ratio of Dana Inc has remained above 1 in all the years presented, indicating that the company has had sufficient current assets to cover its current liabilities. However, management may need to monitor this ratio closely to ensure the company maintains a healthy liquidity position in the future.
Peer comparison
Dec 31, 2023