Fortrea Holdings Inc. (FTRE)
Current ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | ||
|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,253,100 | 1,257,800 | 1,231,500 |
| Total current liabilities | US$ in thousands | 775,900 | 774,600 | 752,100 |
| Current ratio | 1.62 | 1.62 | 1.64 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,253,100K ÷ $775,900K
= 1.62
The current ratio reflects Fortrea Holdings Inc.'s ability to cover its short-term obligations with its current assets. Over the past three quarters, the company's current ratio has remained relatively stable, ranging from 1.62 to 1.64.
A current ratio above 1 indicates that Fortrea Holdings Inc. has more current assets than current liabilities, which is a positive sign of liquidity. A higher current ratio suggests a stronger ability to meet short-term obligations without relying on external sources of financing.
Fortrea Holdings Inc. has maintained a current ratio above 1 consistently, indicating that it has sufficient current assets to cover its short-term liabilities. However, it is important to analyze other financial metrics in conjunction with the current ratio to gain a more comprehensive understanding of the company's overall financial health.
Peer comparison
Dec 31, 2023