Dover Corporation (DOV)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,390,240 | 3,423,460 | 3,061,710 | 2,619,190 | 2,548,430 |
| Total current liabilities | US$ in thousands | 2,413,770 | 2,773,270 | 2,250,340 | 1,738,800 | 1,748,090 |
| Current ratio | 1.40 | 1.23 | 1.36 | 1.51 | 1.46 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,390,240K ÷ $2,413,770K
= 1.40
The current ratio measures Dover Corp.'s ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position.
Analyzing Dover Corp.'s current ratio over the past five years, we observe fluctuations. In 2023, the current ratio improved to 1.40 from 1.23 in 2022, which signifies an increase in the company's ability to cover its short-term liabilities with current assets.
However, compared to 2021 and 2020, where the current ratio was 1.36 and 1.51 respectively, the current ratio for 2023 is lower. This could indicate that Dover Corp. may have a relatively lower level of liquidity compared to those years.
Furthermore, looking back to 2019, where the current ratio was 1.46, the current liquidity position was slightly better as compared to the most recent year.
Overall, while the current ratio for 2023 improved compared to 2022, it is still lower than some previous years, suggesting that Dover Corp. may need to manage its current assets and liabilities more effectively to enhance its short-term liquidity position.
Peer comparison
Dec 31, 2023