FMC Corporation (FMC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,129,100 | 5,438,600 | 5,053,800 | 4,375,600 | 4,074,800 |
| Total current liabilities | US$ in thousands | 3,384,600 | 3,799,600 | 3,520,300 | 2,829,000 | 2,723,900 |
| Current ratio | 1.52 | 1.43 | 1.44 | 1.55 | 1.50 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,129,100K ÷ $3,384,600K
= 1.52
The current ratio of FMC Corp. has shown fluctuations over the past five years, ranging from a low of 1.40 in 2021 to a high of 1.55 in 2020. The current ratio measures a company's ability to meet its short-term obligations with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally seen as a positive sign of financial health.
FMC Corp.'s current ratio has generally been above 1 over the years, indicating that the company has had sufficient current assets to cover its short-term liabilities. The increase in the current ratio to 1.52 in 2023 could suggest an improvement in the company's liquidity position compared to the previous year. However, it is important to note that a very high current ratio may also indicate that the company is not efficiently utilizing its current assets.
Overall, a current ratio above 1 is considered favorable, but it is important to analyze other financial metrics in conjunction with the current ratio to get a comprehensive understanding of FMC Corp.'s financial health.
Peer comparison
Dec 31, 2023