Expeditors International of Washington, Inc. (EXPD)

Current ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Total current assets	US$ in thousands	3,659,780	4,083,040	3,301,510	3,095,920	3,216,390	3,511,920	3,482,550	4,257,010	4,518,020	5,587,560	6,330,150	6,962,730	6,635,040	6,111,540	4,985,260	4,494,200	3,963,540	3,409,900	2,858,270	2,618,820
Total current liabilities	US$ in thousands	2,066,470	2,375,750	2,160,920	1,826,340	1,704,410	1,667,040	1,579,110	1,760,060	2,054,060	2,706,250	3,411,070	3,721,970	3,726,300	3,275,480	2,485,230	2,195,020	1,893,040	1,496,710	1,288,070	1,159,180
Current ratio		1.77	1.72	1.53	1.70	1.89	2.11	2.21	2.42	2.20	2.06	1.86	1.87	1.78	1.87	2.01	2.05	2.09	2.28	2.22	2.26

December 31, 2024 calculation

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

The current ratio of Expeditors International of Washington, Inc. has shown some fluctuations over the past few years. The ratio, which measures the company's ability to meet its short-term liabilities with its current assets, ranged from a high of 2.42 on March 31, 2023, to a low of 1.53 on June 30, 2024.

Overall, the current ratio generally stayed above 2 in the earlier years, indicating a strong ability to cover short-term obligations. However, there was a downward trend starting from December 31, 2021, reaching a low of 1.53 on June 30, 2024. This decline suggests that the company may have faced challenges in maintaining liquidity to cover its short-term obligations during this period.

It's important to note that a current ratio of less than 1 would typically indicate financial distress, but Expeditors International of Washington, Inc. managed to stay above this threshold throughout the period analyzed. The company's management should continue monitoring and working to improve the current ratio to ensure it remains at a healthy level in the future.