Deluxe Corporation (DLX)
Current ratio
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 760,988 | 537,276 | 548,648 | 554,864 | 704,037 | 550,419 | 526,202 | 518,184 | 620,473 | 567,526 | 603,358 | 504,496 | 506,631 | 677,936 | 716,250 | 686,204 | 472,211 | 425,716 | 445,077 | 431,148 |
| Total current liabilities | US$ in thousands | 819,065 | 588,105 | 571,098 | 579,268 | 752,345 | 585,844 | 553,089 | 561,362 | 683,358 | 540,887 | 527,235 | 404,568 | 411,820 | 378,859 | 358,521 | 358,701 | 407,947 | 361,847 | 349,634 | 356,449 |
| Current ratio | 0.93 | 0.91 | 0.96 | 0.96 | 0.94 | 0.94 | 0.95 | 0.92 | 0.91 | 1.05 | 1.14 | 1.25 | 1.23 | 1.79 | 2.00 | 1.91 | 1.16 | 1.18 | 1.27 | 1.21 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $760,988K ÷ $819,065K
= 0.93
The current ratio of Deluxe Corp. has shown some fluctuation over the past eight quarters. The company's current ratio ranged from 0.91 to 0.96 during this time period, with the latest ratio reported at 0.93 in Q4 2023. This indicates that for every dollar of current liabilities, the company had $0.93 of current assets available to cover those short-term obligations at the end of the fourth quarter of 2023.
While the current ratio has remained relatively stable around the 0.94 level, it dipped slightly in Q4 2023 compared to the previous quarter. A current ratio below 1.0 may suggest potential liquidity issues, as it indicates that current liabilities exceed current assets in the short term. However, context and industry norms should also be considered when interpreting this ratio.
Overall, the trend in Deluxe Corp.'s current ratio suggests that the company's ability to meet its short-term financial obligations has been somewhat consistent, although a closer examination of the components of current assets and liabilities would provide a more detailed understanding of the company's liquidity position.