IDEX Corporation (IEX)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,592,700 | 1,446,300 | 1,399,300 | 1,678,000 | 1,657,230 |
| Total current liabilities | US$ in thousands | 629,700 | 500,300 | 543,600 | 480,000 | 399,058 |
| Current ratio | 2.53 | 2.89 | 2.57 | 3.50 | 4.15 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,592,700K ÷ $629,700K
= 2.53
The current ratio of IDEX Corporation has shown a decreasing trend over the past five years. As of December 31, 2020, the current ratio was at a robust 4.15, indicating a strong ability to meet short-term obligations with current assets. However, this ratio has steadily declined to 3.50 by December 31, 2021, and further dropped to 2.57 by December 31, 2022. This significant decrease suggests a potential strain on the company's liquidity position as current liabilities may be increasing relative to current assets.
There was a slight improvement in the current ratio to 2.89 by December 31, 2023, but it remained below the levels seen in 2020. By December 31, 2024, the current ratio decreased again to 2.53, indicating that IDEX Corporation may be facing challenges in managing its working capital efficiently. A current ratio below 3 could raise concerns about the company's ability to cover its short-term obligations.
Overall, while the current ratio of IDEX Corporation has fluctuated over the years, the downward trend suggests a need for the company to closely monitor its current asset and liability levels to ensure adequate liquidity for ongoing operations.
Peer comparison
Dec 31, 2024