Keurig Dr Pepper Inc (KDP)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	3,375,000	3,804,000	3,057,000	2,388,000	2,273,000
Total current liabilities	US$ in thousands	8,916,000	8,076,000	6,485,000	7,694,000	6,474,000
Current ratio		0.38	0.47	0.47	0.31	0.35

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,375,000K ÷ $8,916,000K
= 0.38

The current ratio of Keurig Dr Pepper Inc has fluctuated over the past five years. As of December 31, 2023, the current ratio stands at 0.38, indicating that the company may have difficulty meeting its short-term obligations with its current assets alone. This marks a decrease from the previous year's ratio of 0.47, suggesting a potential strain on liquidity in the current period. Comparing to 2022 and 2021, where the current ratio was also 0.47, the company appeared to have a similar level of short-term solvency in those years.

It is worth noting that in 2020, the current ratio was notably lower at 0.31, indicating a higher risk of insolvency or difficulties in meeting short-term obligations. However, in 2019, the ratio improved slightly to 0.35 but still signaled potential liquidity challenges.

In summary, the current ratio of Keurig Dr Pepper Inc has been variable over the past five years, with the recent decrease in 2023 raising concerns about the company's ability to cover short-term liabilities with its current assets. Further analysis into the composition of current assets and liabilities is recommended to understand the drivers behind these fluctuations and to assess the company's overall liquidity position.