Griffon Corporation (GFF)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 929,476 | 980,591 | 1,214,670 | 1,368,680 | 1,106,030 |
| Total current liabilities | US$ in thousands | 348,990 | 359,149 | 423,579 | 531,636 | 441,822 |
| Current ratio | 2.66 | 2.73 | 2.87 | 2.57 | 2.50 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $929,476K ÷ $348,990K
= 2.66
Griffon Corporation's current ratio has shown a consistent trend over the past five years, ranging from 2.50 in 2020 to 2.87 in 2022. The current ratio measures 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, implying a healthy liquidity position.
The current ratio of 2.66 as of September 30, 2024, indicates that Griffon Corporation had $2.66 in current assets for every $1 of current liabilities. This suggests that the company has a strong ability to meet its short-term obligations using its current assets.
While the current ratio has slightly decreased from the previous year, it remains above 2, which is generally considered a favorable level. However, it is important for the company to continue monitoring its current ratio to ensure that it maintains a sufficient level of liquidity to meet its short-term financial obligations.