Dow Inc (DOW)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 16,590,000 | 17,614,000 | 20,477,000 | 20,848,000 | 19,084,000 |
| Total current liabilities | US$ in thousands | 10,288,000 | 9,957,000 | 11,331,000 | 13,226,000 | 11,108,000 |
| Current ratio | 1.61 | 1.77 | 1.81 | 1.58 | 1.72 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $16,590,000K ÷ $10,288,000K
= 1.61
The current ratio of Dow Inc has shown fluctuations over the past five years. As of December 31, 2020, the current ratio was 1.72, indicating that the company had $1.72 in current assets for every $1 in current liabilities. However, by December 31, 2021, the current ratio had decreased to 1.58, suggesting a slight weakening in the company's short-term liquidity position.
On a positive note, the current ratio improved to 1.81 by December 31, 2022, indicating that Dow Inc had increased its ability to cover its short-term obligations with current assets. The trend continued to December 31, 2023, with a current ratio of 1.77, which also signals a healthy liquidity position.
However, by December 31, 2024, the current ratio decreased to 1.61, hinting at a potential decrease in the company's ability to meet its short-term liabilities with its current assets. Overall, while there have been fluctuations in the current ratio of Dow Inc over the past five years, the company has generally maintained a satisfactory level of liquidity to cover its short-term obligations.
Peer comparison
Dec 31, 2024