Ethan Allen Interiors Inc (ETD)
Current ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 332,683 | 359,453 | 346,749 | 295,279 | 229,952 |
| Total current liabilities | US$ in thousands | 153,696 | 163,097 | 215,643 | 223,902 | 138,978 |
| Current ratio | 2.16 | 2.20 | 1.61 | 1.32 | 1.65 |
June 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $332,683K ÷ $153,696K
= 2.16
The current ratio measures Ethan Allen Interiors Inc's ability to meet its short-term obligations using its current assets. A higher current ratio indicates a stronger short-term liquidity position.
Ethan Allen's current ratio has fluctuated over the past five years, ranging from 1.32 to 2.20. The current ratio has shown an upward trend from 1.32 in 2021 to 2.16 in 2024, indicating an improvement in the company's ability to cover its short-term liabilities with its current assets.
A current ratio above 1 indicates that Ethan Allen has more current assets than current liabilities, suggesting that the company has a sufficient cushion to meet its short-term obligations. It is important to note that a current ratio that is too high may indicate inefficient use of assets.
Overall, the upward trend in Ethan Allen's current ratio reflects positively on the company's liquidity position and its ability to manage short-term financial obligations effectively over the past five years.
Peer comparison
Jun 30, 2024