Genpact Limited (G)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,891,510 | 1,779,490 | 1,921,640 | 1,748,870 | 1,551,680 |
| Total current liabilities | US$ in thousands | 1,317,930 | 1,103,320 | 1,308,800 | 1,202,640 | 910,211 |
| Current ratio | 1.44 | 1.61 | 1.47 | 1.45 | 1.70 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,891,510K ÷ $1,317,930K
= 1.44
The current ratio of Genpact Ltd has fluctuated over the past five years, ranging from a high of 1.70 in 2019 to a low of 1.44 in 2023. The current ratio represents the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which suggests good liquidity and the ability to meet its short-term obligations.
In this case, Genpact's current ratio has generally remained above 1, indicating that the company has been able to cover its short-term liabilities adequately. However, the decreasing trend from 2019 to 2023 may raise some concerns about the company's ability to maintain its current liquidity levels. It would be important to further analyze the components of current assets and liabilities to understand what is driving the changes in the current ratio and determine if there are any underlying issues that need to be addressed.
Peer comparison
Dec 31, 2023