Huntington Ingalls Industries Inc (HII)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,228,000 | 2,880,000 | 2,746,000 | 2,790,000 | 2,444,000 |
| Total current liabilities | US$ in thousands | 2,991,000 | 3,032,000 | 2,895,000 | 2,427,000 | 2,226,000 |
| Current ratio | 1.08 | 0.95 | 0.95 | 1.15 | 1.10 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,228,000K ÷ $2,991,000K
= 1.08
The current ratio of Huntington Ingalls Industries Inc has shown some fluctuations over the past five years. As of December 31, 2020, the current ratio stood at 1.10, indicating that the company had $1.10 in current assets for every $1 in current liabilities. The ratio improved slightly to 1.15 by the end of 2021, suggesting a better ability to cover short-term obligations.
However, there was a decrease in the current ratio to 0.95 by the end of 2022 and this level was maintained through 2023. A current ratio of less than 1 typically raises concerns about liquidity and the company's ability to meet its short-term debts using its current assets alone.
By the end of 2024, the current ratio increased to 1.08, which indicates a slight improvement in the company's short-term liquidity position compared to the previous two years but it still remains below the ideal level of 2. This suggests that investors and creditors may want to closely monitor the company's ability to manage its short-term obligations and working capital going forward.
Peer comparison
Dec 31, 2024