Deluxe Corporation (DLX)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 611,639 | 760,988 | 704,000 | 620,500 | 506,600 |
| Total current liabilities | US$ in thousands | 625,516 | 819,065 | 752,300 | 683,400 | 411,800 |
| Current ratio | 0.98 | 0.93 | 0.94 | 0.91 | 1.23 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $611,639K ÷ $625,516K
= 0.98
The current ratio of Deluxe Corporation has shown some fluctuations over the past five years. As of December 31, 2020, the current ratio was 1.23, indicating that the company had $1.23 in current assets for every $1 in current liabilities. However, the ratio decreased to 0.91 by December 31, 2021, signaling a potential liquidity challenge as current assets were insufficient to cover current liabilities.
Subsequently, there was a slight improvement in the current ratio to 0.94 by December 31, 2022, but it remained below 1, suggesting continued liquidity concerns. The ratio further decreased to 0.93 by December 31, 2023, indicating a persistent liquidity issue.
However, there was a slight uptick in the current ratio to 0.98 by December 31, 2024, although it still remained below the ideal threshold of 1. This trend suggests that Deluxe Corporation may need to closely monitor its liquidity position and consider strategies to strengthen its current asset base relative to current liabilities in order to ensure financial stability and meet short-term obligations effectively.