Geo Group Inc (GEO)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 528,505 | 555,008 | 943,908 | 711,323 | 541,728 |
| Total current liabilities | US$ in thousands | 437,464 | 437,212 | 378,842 | 411,296 | 395,928 |
| Current ratio | 1.21 | 1.27 | 2.49 | 1.73 | 1.37 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $528,505K ÷ $437,464K
= 1.21
The current ratio measures a company's ability to meet its short-term liabilities with its current assets. A higher current ratio indicates a stronger liquidity position.
Geo Group, Inc.'s current ratio has fluctuated over the past five years. In 2023, the current ratio decreased to 1.21 from 1.27 in 2022, which may raise concerns about the company's ability to cover its short-term obligations with its current assets. The ratio is closer to 1, which could indicate potential liquidity challenges.
Contrastingly, in 2021, Geo Group, Inc. exhibited a significantly higher current ratio of 2.49, suggesting a more robust liquidity position. This improvement might have been due to increased current assets or decreased current liabilities during that period.
In 2020 and 2019, the company's current ratios were 1.73 and 1.38, respectively, indicating a moderate ability to cover short-term liabilities with current assets.
In summary, Geo Group, Inc.'s current ratio has varied over the years, highlighting changes in the company's liquidity position. Further analysis of the components of current assets and liabilities would provide a more in-depth understanding of the company's short-term financial health.
Peer comparison
Dec 31, 2023