Graco Inc (GGG)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,365,810 | 1,205,620 | 1,363,620 | 1,023,800 | 791,468 |
| Total current liabilities | US$ in thousands | 395,200 | 399,917 | 506,792 | 321,389 | 285,322 |
| Current ratio | 3.46 | 3.01 | 2.69 | 3.19 | 2.77 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,365,810K ÷ $395,200K
= 3.46
The current ratio of Graco Inc has shown a consistent upward trend over the past five years, indicating a strengthening liquidity position. As of December 31, 2023, the current ratio stands at 3.46, representing a significant improvement from the previous year's ratio of 3.01. This signifies that Graco Inc's current assets are 3.46 times greater than its current liabilities, suggesting a healthy ability to cover short-term obligations.
The upward trend in the current ratio from 2019 to 2023 reflects the company's effective management of its current assets and liabilities. A current ratio above 2 is generally considered healthy, and Graco Inc has consistently maintained ratios well above this benchmark. This indicates a strong financial position and the ability to meet its short-term obligations comfortably.
Overall, the increasing current ratio of Graco Inc over the years is a positive indicator of the company's financial health and liquidity position, suggesting its ability to efficiently manage its working capital and withstand potential short-term financial challenges.
Peer comparison
Dec 31, 2023