Huntington Ingalls Industries Inc (HII)
Current ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,880,000 | 2,587,000 | 2,817,000 | 2,752,000 | 2,746,000 | 2,817,000 | 2,820,000 | 2,786,000 | 2,790,000 | 2,794,000 | 2,317,000 | 2,443,000 | 2,444,000 | 2,881,000 | 2,739,000 | 2,137,000 | 1,785,000 | 2,025,000 | 2,123,000 | 1,922,000 |
| Total current liabilities | US$ in thousands | 3,032,000 | 2,817,000 | 2,927,000 | 2,867,000 | 2,895,000 | 2,892,000 | 2,447,000 | 2,421,000 | 2,427,000 | 2,444,000 | 2,123,000 | 2,290,000 | 2,226,000 | 2,233,000 | 2,114,000 | 2,080,000 | 1,890,000 | 1,950,000 | 1,902,000 | 1,960,000 |
| Current ratio | 0.95 | 0.92 | 0.96 | 0.96 | 0.95 | 0.97 | 1.15 | 1.15 | 1.15 | 1.14 | 1.09 | 1.07 | 1.10 | 1.29 | 1.30 | 1.03 | 0.94 | 1.04 | 1.12 | 0.98 |
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 shown some fluctuation over the past eight quarters, ranging from a low of 0.92 in Q3 2023 to a high of 1.15 in both Q2 and Q1 2022. The current ratio measures the company's ability to meet its short-term obligations with its current assets.
In general, a current ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its current assets alone. Huntington Ingalls Industries Inc has experienced this situation in several recent quarters, with the ratio falling below 1, reaching as low as 0.92 in Q3 2023.
However, it is important to note that a high current ratio can also indicate inefficiency in managing assets, particularly if the company is holding excess levels of current assets that could be better utilized elsewhere. In the case of Huntington Ingalls Industries Inc, the current ratio was notably above the ideal ratio of 1 in Q2 and Q1 2022, which suggests that the company may have been holding onto more current assets than necessary during those periods.
Overall, the fluctuation in Huntington Ingalls Industries Inc's current ratio over the past eight quarters indicates some variability in the company's ability to meet its short-term obligations with its current assets. Further analysis of the company's liquidity position and management of current assets may be warranted to better understand the implications of these fluctuations.
Peer comparison
Dec 31, 2023