Howmet Aerospace Inc (HWM)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,362,000 | 3,316,000 | 3,143,000 | 2,737,000 | 3,672,000 |
| Total current liabilities | US$ in thousands | 1,549,000 | 1,784,000 | 1,482,000 | 1,253,000 | 1,660,000 |
| Current ratio | 2.17 | 1.86 | 2.12 | 2.18 | 2.21 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,362,000K ÷ $1,549,000K
= 2.17
The current ratio of Howmet Aerospace Inc has shown a relatively stable trend over the past few years. As of December 31, 2020, the current ratio was 2.21, indicating that the company had $2.21 in current assets for every $1 in current liabilities. This ratio decreased slightly to 2.18 by December 31, 2021, and further to 2.12 by December 31, 2022.
However, there was a more significant decrease in the current ratio to 1.86 by December 31, 2023, which may raise concerns about the company's ability to meet its short-term obligations. Nonetheless, by December 31, 2024, the current ratio improved to 2.17, suggesting an enhanced liquidity position compared to the previous year.
Overall, while there have been fluctuations in the current ratio of Howmet Aerospace Inc, the company has generally maintained a healthy liquidity position, with the ratio consistently above 1, indicating that it has sufficient current assets to cover its current liabilities in most of the years under review.
Peer comparison
Dec 31, 2024