FormFactor Inc (FORM)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 605,128 | 573,780 | 474,552 | 524,039 | 487,074 |
| Total current liabilities | US$ in thousands | 131,345 | 131,095 | 149,667 | 148,754 | 154,571 |
| Current ratio | 4.61 | 4.38 | 3.17 | 3.52 | 3.15 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $605,128K ÷ $131,345K
= 4.61
FormFactor Inc's current ratio has shown a consistent improvement over the past five years, increasing from 3.15 in December 2020 to 4.61 in December 2024. This indicates that the company's current assets are more than sufficient to cover its current liabilities, reflecting strong liquidity and financial health. The upward trend in the current ratio suggests that FormFactor Inc has been effectively managing its short-term obligations and working capital, which can provide a buffer against financial risks and uncertainties. The company's ability to maintain a high current ratio over the years may indicate its capacity to meet its short-term financial obligations and capitalize on potential growth opportunities.
Peer comparison
Dec 31, 2024