IPG Photonics Corporation (IPGP)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,431,000 | 1,914,650 | 1,986,270 | 2,347,680 | 2,148,080 |
| Total current liabilities | US$ in thousands | 205,019 | 214,861 | 274,646 | 313,433 | 214,578 |
| Current ratio | 6.98 | 8.91 | 7.23 | 7.49 | 10.01 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,431,000K ÷ $205,019K
= 6.98
The current ratio of IPG Photonics Corporation has shown a consistent downward trend over the past five years, declining from 10.01 in December 31, 2020 to 6.98 in December 31, 2024. This suggests that the company's ability to meet its short-term obligations with its current assets has weakened over the period. However, it is worth noting that despite the decrease, the current ratio remains above 1, indicating that IPG Photonics Corporation still has more than enough current assets to cover its current liabilities. The company should continue monitoring its liquidity position to ensure it can fulfill its short-term financial commitments effectively.
Peer comparison
Dec 31, 2024