Forward Air Corporation (FWRD)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	347,028	304,315	282,807	245,896	236,318
Total current liabilities	US$ in thousands	237,094	169,398	164,692	171,620	137,164
Current ratio		1.46	1.80	1.72	1.43	1.72

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $347,028K ÷ $237,094K
= 1.46

The current ratio of Forward Air Corporation has exhibited fluctuations over the past five years. In 2023, the current ratio decreased to 1.46 from 1.80 in 2022, indicating that the company may have faced challenges in managing its short-term liabilities relative to its current assets during the year. However, it is worth noting that the current ratio in 2023 still remains above 1, which generally suggests that the company has an adequate level of current assets to cover its current liabilities.

Comparing the current ratio to previous years, we observe that it was highest in 2022 at 1.80, which implies that Forward Air Corporation had a relatively stronger liquidity position at that time. The current ratio saw a decline in 2020 to 1.43, signaling a potential liquidity strain that year. The company managed to improve its liquidity in 2021 with a current ratio of 1.72 before experiencing a decrease again in 2023.

Overall, while the current ratio has fluctuated, it is vital to consider other liquidity measures and financial metrics to gain a comprehensive understanding of Forward Air Corporation's financial health and liquidity management.