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.