FMC Corporation (FMC)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 4,958,300 5,129,100 5,438,600 4,937,600 4,375,600
Total current liabilities US$ in thousands 3,019,200 3,384,600 3,799,600 3,520,300 2,829,000
Current ratio 1.64 1.52 1.43 1.40 1.55

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,958,300K ÷ $3,019,200K
= 1.64

Based on the data provided for FMC Corporation's current ratio over the past five years, we observe a fluctuating trend. The current ratio stood at 1.55 as of December 31, 2020, indicating that the company had $1.55 in current assets for every $1 in current liabilities.

However, there was a decrease in the current ratio to 1.40 by December 31, 2021, suggesting a potential strain on the company's short-term liquidity. The ratio slightly improved to 1.43 by December 31, 2022, but did not fully recover to its previous level.

By December 31, 2023, the current ratio increased to 1.52, indicating a healthier liquidity position compared to the previous year. This improvement continued into December 31, 2024, with the current ratio reaching 1.64, showing that FMC Corporation had strengthened its short-term financial health.

Overall, while the company experienced some fluctuations in its current ratio over the years, the recent upward trend indicates an improvement in its ability to meet short-term obligations with current assets. It is important for FMC Corporation to continue monitoring and managing its liquidity position effectively to ensure financial stability in the future.