Graham Holdings Co (GHC)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,098,620 | 1,849,300 | 1,708,090 | 1,847,170 | 1,774,190 |
| Total current liabilities | US$ in thousands | 1,199,800 | 1,229,680 | 1,174,010 | 1,166,340 | 949,646 |
| Current ratio | 1.75 | 1.50 | 1.45 | 1.58 | 1.87 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,098,620K ÷ $1,199,800K
= 1.75
The current ratio of Graham Holdings Co has shown a gradual decline over the past few years, moving from 1.87 on December 31, 2020, to 1.58 on December 31, 2021, and further decreasing to 1.45 on December 31, 2022. However, there was a slight improvement in the current ratio to 1.50 on December 31, 2023, before rebounding to 1.75 on December 31, 2024.
A current ratio above 1 indicates that the company's current assets are sufficient to cover its current liabilities. While the ratio has fluctuated, it generally reflects that Graham Holdings Co has had enough short-term assets to meet its short-term obligations during the period under review.
The decreasing trend from 2020 to 2022 may raise concerns about the company's liquidity position, as it indicates a potential strain on its ability to pay off short-term obligations. However, the improvement in 2023 and the rebound in 2024 suggest a positive development in managing current assets and liabilities.
It is crucial for stakeholders to continue monitoring the company's current ratio in the future, as it provides insights into the company's liquidity and ability to meet its short-term financial commitments.
Peer comparison
Dec 31, 2024