Gen Digital Inc. (GEN)

Current ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Total current assets	US$ in thousands	1,358,000	1,233,000	2,260,000	1,538,000	3,079,000
Total current liabilities	US$ in thousands	2,648,000	2,849,000	3,065,000	2,136,000	2,622,000
Current ratio		0.51	0.43	0.74	0.72	1.17

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,358,000K ÷ $2,648,000K
= 0.51

The current ratio measures a company's ability to cover its short-term obligations with its current assets. Gen Digital Inc.'s current ratio trend over the past five years has fluctuated.

In the latest fiscal year ending March 31, 2024, Gen Digital Inc. reported a current ratio of 0.51. This indicates that the company may have challenges meeting its short-term debt obligations with its current assets. A current ratio below 1 suggests potential liquidity issues.

Comparing this to the previous year, there was an improvement in the current ratio from 0.43 to 0.51. However, it is still below 1, indicating that the company may need to improve its liquidity position.

Looking further back, Gen Digital Inc. had a higher current ratio of 0.74 in 2022 and 0.72 in 2021, which were better than the most recent years but still suggest room for improvement. The significant drop in the current ratio from 2020, where it stood at 1.17, could raise concerns about the company's ability to cover its short-term obligations with its current assets.

In conclusion, Gen Digital Inc.'s current ratio has exhibited fluctuations over the past five years, with the latest ratio of 0.51 indicating potential liquidity challenges. The company may need to focus on managing its current assets more effectively to ensure it can meet its short-term obligations in the future.