Freshpet Inc (FRPT)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 436,998 427,319 261,965 150,325 109,096
Total current liabilities US$ in thousands 98,869 89,222 89,614 58,946 33,121
Current ratio 4.42 4.79 2.92 2.55 3.29

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $436,998K ÷ $98,869K
= 4.42

The current ratio of Freshpet Inc has demonstrated notable fluctuations over the period from December 31, 2020, to December 31, 2024. At the end of 2020, the company's current ratio was 3.29, indicating a strong liquidity position with ample current assets to cover current liabilities. In 2021, this ratio declined to 2.55, suggesting a decrease in liquidity but still remaining comfortably above the commonly referenced threshold of 1.0, which indicates that current assets exceeded current liabilities. The ratio then increased to 2.92 by the end of 2022, reflecting a partial recovery in liquidity.

The most significant change is observed at the end of 2023, when the current ratio rose sharply to 4.79. This indicates a substantial enhancement in liquidity, with current assets significantly surpassing current liabilities. The ratio slightly declined in 2024 to 4.42, but remained at a high level, maintaining a strong liquidity position.

Overall, the trend depicts that Freshpet Inc has maintained a robust liquidity position throughout the observed period, with the current ratio generally well above the critical threshold of 1.0. The substantial increase in 2023 suggests improved short-term financial health, potentially driven by increases in current assets or a reduction in current liabilities. The slight decline in 2024 still leaves the company's liquidity position at a comfortable level, implying continued ability to meet short-term obligations without concern.