Forward Air Corporation (FWRD)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	472,500	347,028	304,315	282,807	249,526
Total current liabilities	US$ in thousands	384,046	237,094	169,398	164,692	172,052
Current ratio		1.23	1.46	1.80	1.72	1.45

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $472,500K ÷ $384,046K
= 1.23

The current ratio of Forward Air Corporation has shown fluctuations over the past five years. As of December 31, 2020, the current ratio was 1.45, indicating that the company had $1.45 in current assets for every $1 in current liabilities. This ratio increased steadily to 1.80 by December 31, 2022, suggesting an improvement in the company's short-term liquidity position.

However, there was a slight decline in the current ratio to 1.46 by December 31, 2023, and a more significant drop to 1.23 by December 31, 2024. These decreases may raise concerns about the company's ability to meet its short-term obligations with its current assets.

Overall, while the current ratio of Forward Air Corporation has demonstrated some variability, it has generally remained above 1, indicating a healthy liquidity position. However, management should closely monitor this ratio to ensure the company can meet its short-term financial obligations effectively.