Eastman Chemical Company (EMN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,481,000 | 3,778,000 | 4,646,000 | 3,541,000 | 3,321,000 |
| Total current liabilities | US$ in thousands | 2,576,000 | 3,251,000 | 2,971,000 | 2,038,000 | 1,789,000 |
| Current ratio | 1.35 | 1.16 | 1.56 | 1.74 | 1.86 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,481,000K ÷ $2,576,000K
= 1.35
The current ratio of Eastman Chemical Co has exhibited fluctuations over the past five years. The ratio was highest at 1.86 in 2019 and declined gradually to 1.35 in 2023. This indicates a weakening liquidity position over time, as the company's current assets relative to its current liabilities have decreased. A ratio below 1 suggests potential difficulties in meeting short-term obligations, while a ratio above 1 indicates sufficient current assets to cover current liabilities. The downward trend in the current ratio may raise concerns about the company's ability to manage its short-term financial obligations effectively. Further analysis of Eastman Chemical Co's liquidity management practices and operational efficiency may provide insights into the factors contributing to the fluctuations in its current ratio.
Peer comparison
Dec 31, 2023