Graco Inc (GGG)
Current ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,365,810 | 1,377,330 | 1,410,450 | 1,288,460 | 1,205,620 | 1,285,900 | 1,276,480 | 1,197,220 | 1,363,620 | 1,333,070 | 1,203,950 | 1,127,390 | 1,023,800 | 1,061,190 | 1,038,290 | 1,048,770 | 791,468 | 772,627 | 798,893 | 733,509 |
| Total current liabilities | US$ in thousands | 395,200 | 395,888 | 489,338 | 381,698 | 399,917 | 430,768 | 424,058 | 402,313 | 506,792 | 427,214 | 358,724 | 323,520 | 321,389 | 326,453 | 310,380 | 311,763 | 285,322 | 287,527 | 359,602 | 354,044 |
| Current ratio | 3.46 | 3.48 | 2.88 | 3.38 | 3.01 | 2.99 | 3.01 | 2.98 | 2.69 | 3.12 | 3.36 | 3.48 | 3.19 | 3.25 | 3.35 | 3.36 | 2.77 | 2.69 | 2.22 | 2.07 |
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 fluctuations over the past few quarters, ranging from as low as 2.07 to as high as 3.48. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position, as the company has more current assets to cover its current liabilities.
Graco's current ratio has generally been above 3 in recent quarters, indicating a healthy liquidity position. However, there was a slight dip in the current ratio in the second and fourth quarters of 2022, which could suggest a temporary strain on liquidity. Overall, the current ratio has been relatively stable, with some fluctuations within the typical range for the industry.
It is important to note that while a high current ratio is generally favorable, an excessively high ratio may indicate inefficiency in utilizing current assets. Therefore, it is essential for Graco Inc to maintain an optimal balance between current assets and current liabilities to ensure efficient operations and financial stability.
Peer comparison
Dec 31, 2023