Graco Inc (GGG)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 1,497,440 1,365,810 1,205,620 1,363,620 1,023,800
Total current liabilities US$ in thousands 405,808 395,200 399,917 506,792 321,389
Current ratio 3.69 3.46 3.01 2.69 3.19

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,497,440K ÷ $405,808K
= 3.69

Graco Inc's current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has shown a generally positive trend over the past five years. The ratio decreased slightly from 3.19 in December 2020 to 2.69 in December 2021, possibly indicating a decrease in liquidity. However, from December 2021 to December 2024, the current ratio steadily improved, reaching 3.69 by the end of 2024. This upward trend suggests that Graco Inc has been effectively managing its liquidity position and has sufficient current assets to meet its short-term liabilities. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is a positive indicator of financial health. Overall, Graco Inc's current ratio indicates a strong liquidity position and ability to meet its short-term obligations.