Knowles Cor (KN)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 361,400 | 428,800 | 362,400 | 380,300 | 419,600 |
| Total current liabilities | US$ in thousands | 197,600 | 164,600 | 99,100 | 166,200 | 297,300 |
| Current ratio | 1.83 | 2.61 | 3.66 | 2.29 | 1.41 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $361,400K ÷ $197,600K
= 1.83
The current ratio for Knowles Cor has shown fluctuations over the past five years. Starting at 1.41 in December 31, 2020, the ratio increased significantly to 2.29 by December 31, 2021, indicating an improvement in the company's short-term liquidity position. This positive trend continued with a further increase to 3.66 by December 31, 2022, suggesting that Knowles Cor had a strong ability to cover its short-term obligations with current assets.
However, there was a slight decline in the current ratio to 2.61 by December 31, 2023, which may indicate a potential decrease in liquidity compared to the previous year. The ratio further dropped to 1.83 by December 31, 2024, signaling a significant decrease in the company's ability to cover its short-term liabilities with current assets.
Overall, the current ratio fluctuated throughout the five-year period, with some years showing strong liquidity positions and others indicating potential liquidity challenges for Knowles Cor. It is important for the company to closely monitor its current assets and liabilities to ensure a healthy balance between them and maintain a stable liquidity position in the future.
Peer comparison
Dec 31, 2024