Flowserve Corporation (FLS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,703,780 | 2,450,970 | 2,388,680 | 2,904,330 | 2,506,750 |
| Total current liabilities | US$ in thousands | 1,438,580 | 1,243,150 | 1,131,800 | 1,141,630 | 1,117,440 |
| Current ratio | 1.88 | 1.97 | 2.11 | 2.54 | 2.24 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,703,780K ÷ $1,438,580K
= 1.88
The current ratio of Flowserve Corp. has shown a declining trend over the past five years. The current ratio dropped from 2.25 in 2019 to 1.88 in 2023. This indicates that the company's current assets may be decreasing relative to its current liabilities over time. A current ratio below 2.0 generally suggests a potential liquidity concern, as the company may have difficulty meeting its short-term obligations.
While the current ratio of 1.88 in 2023 is above the industry average of 1.5, it is important for investors and stakeholders to monitor this trend closely as further decreases in the current ratio may indicate increasing liquidity risk. Flowserve Corp. should consider implementing strategies to improve its liquidity position, such as managing working capital more efficiently or restructuring its current liabilities.
Peer comparison
Dec 31, 2023