Dow Inc (DOW)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 17,614,000 | 20,477,000 | 20,848,000 | 19,084,000 | 16,815,000 |
| Total current liabilities | US$ in thousands | 9,957,000 | 11,331,000 | 13,226,000 | 11,108,000 | 10,679,000 |
| Current ratio | 1.77 | 1.81 | 1.58 | 1.72 | 1.57 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $17,614,000K ÷ $9,957,000K
= 1.77
The current ratio of Dow Inc, a measure of its short-term liquidity, has fluctuated over the past five years. As of December 31, 2023, the current ratio stood at 1.77, indicating that the company had $1.77 in current assets for every $1 of current liabilities. This represents a slight decrease from the previous year's ratio of 1.81. However, compared to 2021 and 2020, the current ratio has shown improvement from 1.58 and 1.72, respectively. The current ratio peaked in 2022 at 1.81, suggesting strong short-term liquidity, while 2019 saw a ratio of 1.57.
The current ratio is an important indicator of a company's ability to meet its short-term financial obligations. Although the ratio has experienced some fluctuations, it remains above 1, signaling that Dow Inc has had sufficient current assets to cover its current liabilities in each of the past five years. However, it is important to consider other factors such as the composition of current assets and liabilities to obtain a comprehensive view of the company's liquidity position.
Peer comparison
Dec 31, 2023