Embecta Corp (EMBC)

Current ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022
Total current assets	US$ in thousands	761,000	781,100	710,000	719,500	749,100	787,500	756,300	761,700	664,700
Total current liabilities	US$ in thousands	374,000	370,700	310,400	326,600	353,500	385,800	357,700	370,300	301,000
Current ratio		2.03	2.11	2.29	2.20	2.12	2.04	2.11	2.06	2.21

September 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $761,000K ÷ $374,000K
= 2.03

The current ratio of Embecta Corp has shown a generally positive trend over the past few quarters, indicating the company's ability to cover its short-term liabilities with its current assets. The current ratio ranged from 1.62 to 2.54 over the past few years, with the most recent ratio standing at 2.03 as of September 30, 2024.

A current ratio above 1 suggests that the company has more current assets than current liabilities, which is a healthy sign. A ratio above 2 is typically considered strong, as it indicates that the company can easily meet its short-term obligations. Embecta Corp's current ratio has consistently been above 2 for the majority of the periods analyzed, reflecting a strong liquidity position.

Despite some fluctuations in the current ratio, the overall trend indicates that Embecta Corp has been managing its short-term obligations effectively and has maintained a solid liquidity position. Investors and creditors often view a high current ratio positively, as it suggests that the company is financially stable and capable of meeting its short-term financial commitments.