Huntington Ingalls Industries Inc (HII)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,880,000 | 2,746,000 | 2,790,000 | 2,444,000 | 1,785,000 |
| Total current liabilities | US$ in thousands | 3,032,000 | 2,895,000 | 2,427,000 | 2,226,000 | 1,890,000 |
| Current ratio | 0.95 | 0.95 | 1.15 | 1.10 | 0.94 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,880,000K ÷ $3,032,000K
= 0.95
The current ratio of Huntington Ingalls Industries Inc has fluctuated over the past five years. In 2023 and 2022, the current ratio remained constant at 0.95, indicating that the company had $0.95 in current assets for every $1 in current liabilities. The ratio was at its highest in 2021 at 1.15, which suggests improved liquidity as the company had $1.15 in current assets for every $1 in current liabilities. In 2020, the ratio was 1.10, also reflecting a relatively strong liquidity position. However, in 2019, the current ratio dropped to 0.94, indicating a lower level of current assets relative to current liabilities.
Overall, the trend in the current ratio shows some variability, with a peak in 2021 and fluctuations in other years. A current ratio below 1 may raise concerns about the company's ability to meet its short-term obligations using its current assets. It would be important to assess the reasons behind these fluctuations and monitor whether the company takes steps to maintain a healthy liquidity position going forward.
Peer comparison
Dec 31, 2023