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.