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