FormFactor Inc (FORM)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 573,780 | 474,552 | 524,039 | 487,074 | 419,043 |
| Total current liabilities | US$ in thousands | 131,095 | 149,667 | 148,754 | 154,571 | 136,560 |
| Current ratio | 4.38 | 3.17 | 3.52 | 3.15 | 3.07 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $573,780K ÷ $131,095K
= 4.38
The current ratio of FormFactor Inc has shown a fluctuating trend over the past five years. The current ratio reached its peak of 4.38 in 2023, indicating that the company had $4.38 in current assets for every $1 in current liabilities. This significant increase from the previous year's ratio of 3.17 suggests an improvement in the company's short-term liquidity position.
In the preceding years, the current ratio ranged between 3.07 and 3.52, demonstrating a relatively stable liquidity position. A current ratio above 1 indicates that the company has sufficient current assets to cover its current liabilities, which is crucial for meeting short-term obligations and financial stability.
The increase in the current ratio in 2023 could indicate efficient management of working capital, improved cash flow management, or possibly increased liquidity in the form of cash, marketable securities, or accounts receivable. However, it is essential to consider other factors such as the composition of current assets and liabilities, industry benchmarks, and overall financial health to gain a comprehensive understanding of FormFactor Inc's liquidity position.
Peer comparison
Dec 31, 2023