Grocery Outlet Holding Corp (GO)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 503,898 516,551 467,357 442,745 381,957
Total current liabilities US$ in thousands 349,624 383,965 280,514 237,906 232,646
Current ratio 1.44 1.35 1.67 1.86 1.64

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $503,898K ÷ $349,624K
= 1.44

Based on the provided data, Grocery Outlet Holding Corp's current ratio has shown fluctuations over the past five years. The current ratio, a measure of a company's ability to cover its short-term liabilities with its short-term assets, was 1.64 as of December 31, 2020. It then improved to 1.86 by December 31, 2021, indicating a stronger liquidity position.

However, the ratio decreased to 1.67 by December 31, 2022, and further dropped to 1.35 by December 31, 2023. These decreases may suggest potential challenges in meeting short-term obligations with current assets. The current ratio improved slightly to 1.44 by December 31, 2024, but it still remained below the levels seen in 2021.

Overall, fluctuations in Grocery Outlet Holding Corp's current ratio indicate changes in the company's liquidity position over the years, with a notable decline in 2023. It is essential for the company to carefully manage its current assets and liabilities to maintain a healthy liquidity position for financial stability and operational flexibility.


Peer comparison

Dec 31, 2024

Company name
Symbol
Current ratio
Grocery Outlet Holding Corp
GO
1.44
Kroger Company
KR
0.96
Sprouts Farmers Market LLC
SFM
0.99