Greenbrier Companies Inc (GBX)
Current ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,167,800 | 1,105,300 | 1,398,100 | 1,332,500 | 1,363,270 |
| Total current liabilities | US$ in thousands | 1,017,000 | 789,700 | 1,021,700 | 941,981 | 815,406 |
| Current ratio | 1.15 | 1.40 | 1.37 | 1.41 | 1.67 |
August 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,167,800K ÷ $1,017,000K
= 1.15
The current ratio for Greenbrier Companies Inc has been showing a declining trend over the past five years. In 2020, the current ratio stood at 1.67, indicating a strong liquidity position. However, there has been a gradual decrease in the current ratio since then, reaching 1.15 in 2024.
A current ratio of 1.15 means that the company may be facing some challenges in meeting its short-term obligations with its current assets. While a current ratio above 1.0 generally indicates that the company has sufficient current assets to cover its current liabilities, the downward trend in Greenbrier's current ratio suggests a potential weakening in its liquidity position over the years.
Investors and creditors may closely monitor the company's ability to manage its short-term financial obligations in light of the declining current ratio trend. It could be indicative of potential cash flow issues or an inefficient management of working capital within the company. Further analysis of the company's cash flows and working capital management practices may be warranted to better understand the reasons behind the decreasing current ratio.
Peer comparison
Aug 31, 2024