ESAB Corp (ESAB)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,148,380 | 997,720 | 988,670 | 964,073 | 804,948 |
| Total current liabilities | US$ in thousands | 632,051 | 620,082 | 601,575 | 596,589 | 460,841 |
| Current ratio | 1.82 | 1.61 | 1.64 | 1.62 | 1.75 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,148,380K ÷ $632,051K
= 1.82
ESAB Corp's current ratio has shown relatively stable performance over the past five years. The current ratio measures the company's ability to meet its short-term obligations with its current assets. ESAB Corp's current ratio has fluctuated within a range of 1.61 to 1.82 during this period.
The current ratio was at its lowest in December 31, 2023, at 1.61, indicating a slight decrease in the company's short-term liquidity compared to the previous year. However, the current ratio improved in December 31, 2024, reaching 1.82, which suggests the company had a stronger ability to cover its short-term liabilities with its current assets at that point in time.
Overall, ESAB Corp's current ratio indicates that the company has generally maintained a healthy liquidity position over the years, with a current ratio consistently above 1, which means the company's current assets exceed its current liabilities. This suggests ESAB Corp has been effective in managing its short-term financial obligations.
Peer comparison
Dec 31, 2024