Forward Air Corporation (FWRD)

Current ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	347,028	237,730	215,787	257,794	304,315	312,967	315,756	325,252	282,807	289,261	297,012	247,986	245,896	235,047	247,291	241,189	236,318	215,711	193,072	202,071
Total current liabilities	US$ in thousands	237,094	190,441	169,226	165,770	169,398	179,559	167,460	187,944	164,692	158,466	169,271	169,133	171,620	157,133	146,852	143,328	137,164	139,775	136,635	116,646
Current ratio		1.46	1.25	1.28	1.56	1.80	1.74	1.89	1.73	1.72	1.83	1.75	1.47	1.43	1.50	1.68	1.68	1.72	1.54	1.41	1.73

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 fluctuated over the past five years, ranging from a low of 1.25 to a high of 1.89. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio of less than 1 suggests potential liquidity issues, as the company may struggle to meet its short-term obligations.

Looking at the trend, we see that the current ratio peaked at 1.89 in June 2022, indicating a strong ability to cover short-term obligations at that point. However, the ratio has since declined, reaching 1.25 in September 2023, which may raise concerns about the company's liquidity position. Despite the fluctuations, the current ratio has typically remained above 1, indicating that Forward Air Corporation has generally been able to meet its short-term obligations using its current assets.

It's important to note that while a higher current ratio is generally preferable, an excessively high ratio may indicate inefficient use of assets. It would be essential for the company to closely monitor its current ratio and undertake appropriate measures to ensure adequate liquidity to meet its short-term obligations.