IPG Photonics Corporation (IPGP)

Current ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Total current assets	US$ in thousands	1,431,000	1,570,410	1,717,950	1,829,620	1,914,650	1,920,460	1,924,070	1,915,590	1,986,270	2,119,090	2,170,850	2,282,830	2,347,680	2,325,180	2,290,590	2,202,260	2,148,080	2,031,650	1,950,530	1,874,530
Total current liabilities	US$ in thousands	205,019	194,182	190,483	192,127	214,861	219,709	228,187	249,522	274,646	295,788	315,902	279,836	313,433	292,840	255,905	214,753	214,578	201,445	195,286	195,432
Current ratio		6.98	8.09	9.02	9.52	8.91	8.74	8.43	7.68	7.23	7.16	6.87	8.16	7.49	7.94	8.95	10.25	10.01	10.09	9.99	9.59

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 some fluctuations over the past few years. It has consistently remained above 7.0, indicating a strong ability to meet its short-term obligations with its current assets. The ratio reached its peak in March 2021 at 10.25, demonstrating a high level of liquidity. However, there was a decline in the current ratio in the subsequent quarters, dropping to 6.87 by June 30, 2022. This could indicate a potential strain on the company's ability to cover its short-term liabilities with its current assets.

IPG Photonics Corporation managed to improve its current ratio to 9.52 by March 31, 2024, suggesting a better position in meeting its short-term obligations. Overall, the company has generally maintained a healthy current ratio above the industry average, showcasing a strong financial position in terms of liquidity.