Equifax Inc (EFX)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,360,600 | 1,356,300 | 1,370,500 | 1,120,900 | 2,478,300 |
| Total current liabilities | US$ in thousands | 1,811,500 | 2,019,000 | 2,015,200 | 2,291,300 | 2,483,100 |
| Current ratio | 0.75 | 0.67 | 0.68 | 0.49 | 1.00 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,360,600K ÷ $1,811,500K
= 0.75
The current ratio of Equifax Inc has fluctuated over the past five years, with values as follows: 1.00 (December 31, 2020), 0.49 (December 31, 2021), 0.68 (December 31, 2022), 0.67 (December 31, 2023), and 0.75 (December 31, 2024).
A current ratio below 1 indicates that the company may have difficulties meeting its short-term obligations with its current assets alone. Equifax's current ratio dropped significantly in 2021 but has since improved, although it remains below 1 in all years except for 2020. This suggests that Equifax may be relying more on short-term borrowing or other sources of financing to meet its obligations.
Further analysis into the composition of current assets and liabilities would provide a better understanding of the company's liquidity position and its ability to manage short-term financial obligations. Additionally, trend analysis and comparisons with industry averages would help provide more insights into Equifax Inc's financial health and liquidity management.