Kirby Corporation (KEX)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	1,135,160	1,211,760	1,003,860	1,047,970	917,579
Total current liabilities	US$ in thousands	675,795	642,197	543,772	466,032	514,115
Current ratio		1.68	1.89	1.85	2.25	1.78

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,135,160K ÷ $675,795K
= 1.68

The current ratio of Kirby Corp., a measure of its short-term liquidity and ability to cover immediate liabilities with current assets, has shown some fluctuation over the past five years. As of December 31, 2023, the current ratio stands at 1.68, reflecting a decrease compared to the prior year's ratio of 1.89.

The company's current ratio peaked in 2020 at 2.25, indicating a strong ability to meet short-term obligations with current assets. However, there has been a downward trend since then, with the ratio falling to 1.78 in 2019 and further declining to 1.68 in 2023.

While a current ratio above 1.0 suggests that Kirby Corp. is theoretically able to cover its current liabilities with its current assets, the declining trend in recent years may raise concerns about the company's liquidity position and its ability to meet short-term obligations. It is important for stakeholders to monitor this ratio closely and assess the underlying reasons for the changes in order to evaluate the company's financial health.