Forward Air Corporation (FWRD)

Current ratio

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total current assets	US$ in thousands	472,500	472,500	545,081	558,623	569,433	347,028	237,730	215,787	257,794	304,315	312,967	315,756	325,252	282,807	289,261	297,012	247,986	249,526	235,047	247,291
Total current liabilities	US$ in thousands	384,046	384,046	448,698	420,013	444,841	237,094	190,441	169,226	165,770	169,398	179,559	167,460	187,944	164,692	158,466	169,271	169,133	172,052	157,133	146,852
Current ratio		1.23	1.23	1.21	1.33	1.28	1.46	1.25	1.28	1.56	1.80	1.74	1.89	1.73	1.72	1.83	1.75	1.47	1.45	1.50	1.68

March 31, 2025 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 few years. It increased steadily from June 2022 to September 2022, reaching its peak at 1.89. However, the ratio slightly decreased in the following quarters but remained above 1, indicating that the company's current assets were still relatively sufficient to cover its current liabilities.

The ratio experienced a notable decrease in the June 2023 and September 2023 quarters, dropping from 1.56 to 1.25. This decline may suggest a potential strain on the company's liquidity position during this period. However, the ratio improved in the subsequent quarters but remained below the peak levels seen in 2022.

Overall, the current ratio of Forward Air Corporation has exhibited variability but generally stayed above 1, implying that the company has been able to meet its short-term obligations with its current assets throughout the analyzed period. However, management should monitor and ensure a healthy balance between current assets and current liabilities to sustain adequate liquidity in the future.