Graham Holdings Co (GHC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,849,300 | 1,679,260 | 1,847,170 | 1,774,190 | 1,663,480 |
| Total current liabilities | US$ in thousands | 1,229,680 | 1,145,170 | 1,166,340 | 949,646 | 1,041,870 |
| Current ratio | 1.50 | 1.47 | 1.58 | 1.87 | 1.60 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,849,300K ÷ $1,229,680K
= 1.50
The current ratio of Graham Holdings Co. has shown fluctuations over the past five years, ranging from 1.45 to 1.87. The current ratio measures the company's ability to meet its short-term financial obligations using its current assets, with a higher ratio indicating a stronger liquidity position.
Graham Holdings Co.'s current ratio has generally been above 1, indicating that the company has had sufficient current assets to cover its current liabilities each year. However, the ratio peaked at 1.87 in 2020, suggesting a particularly strong liquidity position that year.
The gradual decline in the current ratio from 2020 to 2023, reaching 1.50, may raise concerns about the company's ability to cover its short-term obligations with its current assets. It is important to monitor this trend to ensure that the company maintains a healthy liquidity position and is able to meet its financial obligations in a timely manner.
Peer comparison
Dec 31, 2023