Element Solutions Inc (ESI)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,270,000 | 1,197,500 | 1,188,700 | 1,214,500 | 989,900 |
| Total current liabilities | US$ in thousands | 379,700 | 369,400 | 344,400 | 415,200 | 314,300 |
| Current ratio | 3.34 | 3.24 | 3.45 | 2.93 | 3.15 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,270,000K ÷ $379,700K
= 3.34
The current ratio of Element Solutions Inc. demonstrates a generally stable liquidity position over the observed period from December 31, 2020, to December 31, 2024. At the end of 2020, the current ratio stood at 3.15, indicating that the company's current assets were more than three times its current liabilities. This ratio declined slightly in 2021 to 2.93, reflecting a modest reduction in liquidity or an increase in current liabilities relative to current assets.
By the end of 2022, the current ratio increased again to 3.45, suggesting an improvement in liquidity, with current assets considerably surpassing current liabilities. The ratio then experienced a minor decrease to 3.24 in 2023 but remained within a healthy range, indicating sustained liquidity. In 2024, the ratio slightly increased again to 3.34, maintaining a strong liquidity position.
Overall, the current ratio remains well above the commonly regarded threshold of 1.0, signifying that Element Solutions Inc. consistently maintains a robust ability to meet its short-term obligations. The fluctuations observed are relatively moderate and indicate a stable liquidity profile throughout the period.
Peer comparison
Dec 31, 2024