IDEXX Laboratories Inc (IDXX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,495,250 | 1,101,480 | 955,655 | 1,062,740 | 679,639 |
| Total current liabilities | US$ in thousands | 951,547 | 1,235,800 | 763,579 | 582,761 | 725,337 |
| Current ratio | 1.57 | 0.89 | 1.25 | 1.82 | 0.94 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,495,250K ÷ $951,547K
= 1.57
The current ratio of Idexx Laboratories, Inc. has shown fluctuation over the past five years. The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets.
In 2023, the current ratio improved significantly to 1.57 from 0.89 in 2022, indicating that Idexx Laboratories improved its short-term liquidity position. This could be attributed to an increase in current assets or a decrease in current liabilities, or a combination of both.
Compared to 2021, where the current ratio was 1.25, the 2023 ratio demonstrates a stronger position in terms of short-term liquidity. Additionally, the current ratio in 2023 is higher than in 2019 when it was recorded at 0.94, indicating a notable improvement over the years.
However, it's important to note the lower current ratio in 2022 (0.89) and 2019 (0.94), which may suggest potential liquidity risks and challenges in covering short-term obligations with available current assets during those years.
Overall, the upward trend in Idexx Laboratories' current ratio from 2022 to 2023 is a positive indicator of improved short-term liquidity and financial health. Further analysis of the components of current assets and liabilities would provide more insights into the company's liquidity management and operational efficiency.
Peer comparison
Dec 31, 2023