Keysight Technologies Inc (KEYS)

Current ratio

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Total current assets	US$ in thousands	4,257,000	4,809,000	4,234,000	3,834,000	3,374,000
Total current liabilities	US$ in thousands	1,427,000	2,049,000	1,407,000	1,309,000	1,081,000
Current ratio		2.98	2.35	3.01	2.93	3.12

October 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,257,000K ÷ $1,427,000K
= 2.98

Keysight Technologies Inc has shown fluctuation in its current ratio over the past five years. The current ratio measures the company's ability to meet its short-term obligations using its current assets. A higher current ratio is generally seen as favorable as it indicates that the company has more current assets relative to current liabilities, providing a cushion for meeting its short-term debts.

In 2024, the current ratio improved to 2.98 from 2.35 in 2023, indicating that the company had a stronger liquidity position with more current assets available to cover its short-term liabilities. However, the current ratio in 2024 was lower compared to 2022 and 2020, where it was 3.01 and 3.12 respectively, showing a slight decline over these years.

While the current ratio fluctuated, it generally remained above 2, which suggests that Keysight Technologies Inc has maintained a healthy liquidity position throughout the period under review. Investors and creditors typically look for a current ratio of at least 1 to ensure that the company can cover its short-term obligations, and Keysight's current ratios over the years have comfortably exceeded this benchmark.

Overall, the trend in Keysight Technologies Inc's current ratio indicates that the company has managed its liquidity position well, although some fluctuations have been observed. It is essential for stakeholders to continue monitoring this ratio to assess the company's ability to manage its short-term financial obligations effectively.