Greif Bros Corporation (GEF)
Current ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,548,700 | 1,369,100 | 1,489,800 | 1,664,100 | 1,302,800 |
| Total current liabilities | US$ in thousands | 1,011,900 | 939,300 | 1,047,900 | 1,314,100 | 1,000,100 |
| Current ratio | 1.53 | 1.46 | 1.42 | 1.27 | 1.30 |
October 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,548,700K ÷ $1,011,900K
= 1.53
Analyzing the current ratio trend of Greif Bros Corporation from October 31, 2020, to October 31, 2024, reveals a consistent improvement in the company's short-term liquidity position. The current ratio, which measures the firm's ability to cover its short-term obligations with current assets, has shown an upward trajectory, increasing from 1.30 in October 2020 to 1.53 in October 2024.
This indicates that the company has been able to enhance its liquidity position over the years, potentially due to better management of its current assets and liabilities. A current ratio above 1 suggests that Greif Bros Corporation has more than enough current assets to meet its short-term liabilities, providing a cushion against potential financial distress.
Overall, the increasing trend in the current ratio reflects positively on the company's short-term financial health and indicates a strengthened ability to meet its obligations as they come due.