Ichor Holdings Ltd (ICHR)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 452,620 | 401,365 | 513,458 | 462,771 | 495,714 |
| Total current liabilities | US$ in thousands | 135,670 | 98,962 | 166,292 | 208,303 | 162,034 |
| Current ratio | 3.34 | 4.06 | 3.09 | 2.22 | 3.06 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $452,620K ÷ $135,670K
= 3.34
Ichor Holdings Ltd has shown a fluctuating trend in its current ratio over the past five years. As of December 31, 2020, the company had a current ratio of 3.06, indicating a strong ability to meet its short-term liabilities with current assets. However, by December 31, 2021, the current ratio decreased to 2.22, suggesting a potential decrease in liquidity and ability to cover short-term obligations.
The company's current ratio improved in the following years, reaching 3.09 on December 31, 2022, 4.06 on December 31, 2023, and then slightly declining to 3.34 by December 31, 2024. These ratios reflect a strengthening liquidity position and a better ability to meet short-term financial commitments compared to the previous year.
Overall, despite some fluctuations, Ichor Holdings Ltd's current ratio has generally remained above 2, indicating a healthy liquidity position and the ability to cover short-term liabilities with current assets. It is important for the company to continue monitoring and managing its liquidity effectively to ensure ongoing financial stability and operational efficiency.
Peer comparison
Dec 31, 2024