FTI Consulting Inc (FCN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,555,450 | 1,510,600 | 1,370,030 | 1,129,710 | 1,178,660 |
| Total current liabilities | US$ in thousands | 892,769 | 769,491 | 718,116 | 670,171 | 612,537 |
| Current ratio | 1.74 | 1.96 | 1.91 | 1.69 | 1.92 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,555,450K ÷ $892,769K
= 1.74
FTI Consulting Inc.'s current ratio has seen fluctuations over the past five years, ranging from 1.69 to 1.96. The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets.
The decreasing trend from 1.92 in 2019 to 1.74 in 2023 could indicate that the company may be facing challenges in managing its short-term obligations relative to its short-term assets. However, the current ratio has remained above 1 in all years, indicating that the company has had sufficient short-term assets to cover its short-term liabilities.
While a higher current ratio is generally preferred as it reflects a stronger liquidity position, the current ratios for FTI Consulting Inc. have been mostly within a reasonable range, except for the dip in 2023. Further analysis, such as examining the composition of current assets and liabilities, would provide more insight into the company's liquidity position and its ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023