Kadant Inc (KAI)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 442,326 | 440,182 | 415,410 | 383,882 | 289,820 |
| Total current liabilities | US$ in thousands | 191,565 | 214,409 | 213,461 | 221,497 | 134,688 |
| Current ratio | 2.31 | 2.05 | 1.95 | 1.73 | 2.15 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $442,326K ÷ $191,565K
= 2.31
The current ratio of Kadant Inc has shown variability over the past five years, ranging from 1.73 to 2.31. A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting a healthy liquidity position.
In 2021, the current ratio decreased to 1.73, indicating a potential strain on liquidity as current liabilities approached current assets. However, this improved in subsequent years, reaching a peak of 2.31 in 2024. This increase suggests that Kadant Inc has strengthened its ability to meet short-term obligations with its current assets.
Overall, Kadant Inc's current ratio has generally been above 1 throughout the period, indicating a generally stable liquidity position. The upward trend in recent years suggests an improvement in the company's ability to manage its short-term financial obligations with its current assets.
Peer comparison
Dec 31, 2024