Embecta Corp (EMBC)
Current ratio
Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | ||
---|---|---|---|---|---|---|---|---|---|---|
Total current assets | US$ in thousands | 719,500 | 749,100 | 787,500 | 756,300 | 761,700 | 664,700 | 580,600 | 426,500 | 258,300 |
Total current liabilities | US$ in thousands | 326,600 | 353,500 | 385,800 | 357,700 | 370,300 | 301,000 | 228,500 | 168,900 | 159,100 |
Current ratio | 2.20 | 2.12 | 2.04 | 2.11 | 2.06 | 2.21 | 2.54 | 2.53 | 1.62 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $719,500K ÷ $326,600K
= 2.20
The current ratio of Embecta Corp has fluctuated over the past few quarters, ranging from a low of 1.62 in December 2021 to a high of 2.54 in June 2022. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting a strong ability to meet its short-term obligations.
In the most recent quarter ending December 31, 2023, Embecta Corp had a current ratio of 2.20, indicating that the company's current assets were more than double its current liabilities. This suggests that the company is in a strong financial position in the short term and has a good buffer to cover any immediate obligations.
It is worth noting that while a higher current ratio is generally favorable, a very high current ratio may indicate that the company is not efficiently utilizing its current assets to generate revenue. On the other hand, a low current ratio may raise concerns about the company's liquidity and ability to meet its short-term obligations.
Overall, based on the current ratio trend of Embecta Corp, it appears that the company has maintained a healthy liquidity position in recent quarters, with a current ratio consistently above 2, indicating a strong ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023