Deluxe Corporation (DLX)
Current ratio
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 | Jun 30, 2020 | Mar 31, 2020 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total current assets | US$ in thousands | 34,400 | 392,637 | 391,373 | 430,210 | 761,000 | 537,300 | 548,600 | 554,864 | 704,000 | 550,419 | 526,200 | 518,184 | 620,500 | 567,526 | 603,300 | 504,496 | 506,600 | 677,900 | 716,250 | 686,200 |
Total current liabilities | US$ in thousands | 625,516 | 427,754 | 404,374 | 444,623 | 819,100 | 588,100 | 571,100 | 579,268 | 752,300 | 585,844 | 553,100 | 561,362 | 683,400 | 540,887 | 527,200 | 404,568 | 411,800 | 378,900 | 358,521 | 358,700 |
Current ratio | 0.05 | 0.92 | 0.97 | 0.97 | 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 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $34,400K ÷ $625,516K
= 0.05
The current ratio of Deluxe Corporation has shown a decreasing trend over the period from March 31, 2020, to December 31, 2024. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger ability to pay off short-term liabilities.
Starting at 1.91 on March 31, 2020, the current ratio increased to 2.00 by June 30, 2020, indicating improved short-term liquidity. However, the ratio began to decline steadily thereafter. By December 31, 2021, the current ratio had dropped to 0.91, indicating potential difficulties in meeting short-term obligations with current assets.
The current ratio remained relatively stable between 0.91 and 0.97 from March 31, 2022, to June 30, 2024, suggesting ongoing challenges in maintaining sufficient liquidity for short-term obligations. However, there was a significant drop to 0.05 on December 31, 2024, which may raise concerns about the company's liquidity position.
Overall, the decreasing trend in Deluxe Corporation's current ratio signals a potential risk in its ability to cover short-term liabilities with its current assets. It is essential for the company to closely monitor and manage its liquidity position to ensure financial stability in the future.