Enovis Corp (ENOV)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 896,519 | 795,023 | 2,303,280 | 1,361,830 | 1,404,240 |
| Total current liabilities | US$ in thousands | 369,607 | 565,199 | 1,023,580 | 811,658 | 857,314 |
| Current ratio | 2.43 | 1.41 | 2.25 | 1.68 | 1.64 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $896,519K ÷ $369,607K
= 2.43
The current ratio of Enovis Corp has fluctuated over the past five years. At the end of 2023, the current ratio stood at 2.43, indicating that the company had $2.43 in current assets available to cover each dollar of current liabilities. This represents a significant improvement from the previous year, where the ratio was 1.41.
The increasing trend in the current ratio from 2022 to 2023 suggests that Enovis Corp's liquidity position has strengthened. A current ratio above 2 is generally considered healthy, as it implies that the company has sufficient current assets to meet its short-term obligations.
However, it is important to note that while a high current ratio signifies good liquidity, it could also indicate that the company is not efficiently utilizing its current assets. Therefore, it is essential for Enovis Corp to strike a balance between liquidity and operational efficiency to ensure long-term financial health. Monitoring and analyzing the current ratio trend over time can provide valuable insights into the company's liquidity management and financial stability.
Peer comparison
Dec 31, 2023