Dril-Quip Inc (DRQ)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 719,717 | 750,024 | 745,052 | 863,193 | 880,489 |
| Total current liabilities | US$ in thousands | 117,703 | 87,555 | 93,663 | 85,512 | 96,940 |
| Current ratio | 6.11 | 8.57 | 7.95 | 10.09 | 9.08 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $719,717K ÷ $117,703K
= 6.11
The current ratio of Dril-Quip, Inc. has been fluctuating over the past five years. The company's current ratio was 6.11 in 2023, 8.60 in 2022, 7.96 in 2021, 10.09 in 2020, and 9.08 in 2019.
A current ratio above 1 indicates that the company has more current assets than current liabilities, providing a measure of the company's ability to cover its short-term obligations. Dril-Quip, Inc. consistently maintains a current ratio well above 1, indicating a strong liquidity position and ability to meet its short-term obligations.
The decrease in the current ratio from 2022 to 2023 may raise some concerns as it suggests a lower level of current assets relative to current liabilities compared to the previous year. However, it is important to note that the current ratio is still healthy at 6.11, indicating that Dril-Quip, Inc. is likely to be able to meet its short-term obligations comfortably.
Overall, Dril-Quip, Inc. appears to have a strong liquidity position based on its current ratio analysis, which is an essential indicator of financial health and short-term solvency.
Peer comparison
Dec 31, 2023