Acushnet Holdings Corp (GOLF)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 973,873 | 996,692 | 1,059,080 | 969,176 | 799,807 |
| Total current liabilities | US$ in thousands | 472,707 | 451,135 | 548,625 | 483,024 | 357,679 |
| Current ratio | 2.06 | 2.21 | 1.93 | 2.01 | 2.24 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $973,873K ÷ $472,707K
= 2.06
Based on the provided data, Acushnet Holdings Corp's current ratio has shown a downward trend over the past five years. The current ratio decreased from 2.24 as of December 31, 2020, to 2.01 as of December 31, 2021, and further to 1.93 as of December 31, 2022. However, the ratio slightly improved to 2.21 as of December 31, 2023, before declining again to 2.06 as of December 31, 2024.
The current ratio measures the company's ability to cover its short-term obligations with its current assets. A ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered favorable. In Acushnet Holdings Corp's case, the current ratio has generally been above 1 over the years, indicating that the company has been able to meet its short-term obligations.
Although the current ratio has fluctuated, it remained above 1, suggesting that Acushnet Holdings Corp has a solid liquidity position. However, the decreasing trend in recent years may raise concerns about the company's ability to efficiently manage its short-term financial obligations. It would be important for stakeholders to continue monitoring the company's liquidity position to ensure it remains at a comfortable level to support its operations and growth.
Peer comparison
Dec 31, 2024