Expeditors International of Washington, Inc. (EXPD)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	3,659,780	3,216,390	4,518,020	6,635,040	3,963,540
Total current liabilities	US$ in thousands	2,066,470	1,704,410	2,054,060	3,726,300	1,893,040
Current ratio		1.77	1.89	2.20	1.78	2.09

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,659,780K ÷ $2,066,470K
= 1.77

Expeditors International of Washington, Inc.'s current ratio has shown some fluctuations over the past five years. The current ratio measures a company's ability to cover its short-term obligations with its current assets.

As of December 31, 2020, the company had a current ratio of 2.09, indicating that it had $2.09 in current assets for every $1 of current liabilities. This suggests the company was in a comfortable position to meet its short-term obligations.

However, by December 31, 2021, the current ratio had decreased to 1.78, which implies a slight weakening in the company's ability to cover its short-term liabilities with current assets. This decrease may raise some concerns about liquidity risk and the company's ability to manage its short-term obligations effectively.

Nevertheless, by December 31, 2022, the current ratio improved to 2.20, signaling a healthier position in terms of liquidity. An increase in the current ratio indicates that the company may have increased its current assets relative to its current liabilities, reflecting improved liquidity and potentially better financial management.

However, in the following years, the current ratio once again decreased to 1.89 by December 31, 2023, and further dropped to 1.77 by December 31, 2024. These declines may indicate potential difficulties in managing short-term liabilities with current assets.

Overall, while the current ratio of Expeditors International of Washington, Inc. has shown fluctuations over the five-year period, it is essential for the company to closely monitor and manage its liquidity position to ensure it can meet its short-term obligations effectively.