Itron Inc (ITRI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,049,440 | 829,584 | 749,929 | 930,262 | 997,251 |
| Total current liabilities | US$ in thousands | 537,236 | 498,572 | 501,344 | 549,899 | 671,391 |
| Current ratio | 1.95 | 1.66 | 1.50 | 1.69 | 1.49 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,049,440K ÷ $537,236K
= 1.95
The current ratio of Itron Inc. has shown fluctuating trends over the past five years. In 2023, the current ratio stood at 1.95, indicating that the company had $1.95 in current assets to cover each dollar of current liabilities. This represents an improvement from the previous year's ratio of 1.66.
The current ratio in 2023 suggests that Itron Inc. may have a strong liquidity position, as it has sufficient current assets to meet its short-term obligations comfortably. It is important to note that a current ratio above 1.0 typically indicates that a company can cover its short-term liabilities.
While the current ratio has varied over the years, the company's ability to maintain ratios consistently above 1.0 suggests that it has effectively managed its liquidity position. Investors and creditors often view a higher current ratio positively, as it indicates a lower risk of default on short-term obligations.
Overall, the upward trend in Itron Inc.'s current ratio from 2022 to 2023 reflects a potentially improving liquidity position for the company, providing a favorable indication for its financial health in the short term.
Peer comparison
Dec 31, 2023