Ichor Holdings Ltd (ICHR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 401,365 | 513,458 | 462,771 | 495,714 | 276,947 |
| Total current liabilities | US$ in thousands | 98,962 | 166,292 | 208,303 | 162,034 | 163,867 |
| Current ratio | 4.06 | 3.09 | 2.22 | 3.06 | 1.69 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $401,365K ÷ $98,962K
= 4.06
The current ratio of Ichor Holdings Ltd has shown a consistent improvement over the past five years, increasing from 1.69 in 2019 to 4.06 in 2023. This indicates a strong ability to meet its short-term obligations using its current assets. The current ratio was relatively stable around 3.0 in 2020 and 2022, but experienced a significant increase in 2021 to 2.22.
The current ratio of 4.06 in 2023 suggests that the company's current assets are substantially higher than its current liabilities, reflecting a healthy liquidity position. This may indicate effective management of working capital and a reduced risk of financial distress in the short term. Overall, the increasing trend in the current ratio reflects an improving liquidity position for Ichor Holdings Ltd over the years.
Peer comparison
Dec 31, 2023