LCI Industries (LCII)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	1,116,870	1,390,780	1,566,880	869,801	670,791
Total current liabilities	US$ in thousands	394,992	421,300	627,216	416,394	271,258
Current ratio		2.83	3.30	2.50	2.09	2.47

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,116,870K ÷ $394,992K
= 2.83

The current ratio of LCI Industries has fluctuated over the past five years, ranging from 2.09 in 2020 to 3.30 in 2022. For the most recent year, as of December 31, 2023, the current ratio stands at 2.83. This indicates that the company's current assets are 2.83 times its current liabilities, suggesting a healthy liquidity position.

While the current ratio has decreased from the previous year, it is still above 2.0, which is generally considered a satisfactory level for most industries. This implies that LCI Industries has sufficient current assets to cover its short-term obligations.

It is important to note that a higher current ratio may indicate a lower risk of financial distress in the short term, but too high a ratio may suggest that the company is not efficiently utilizing its current assets. Conversely, a lower current ratio could signal liquidity issues, making it challenging for the company to meet its short-term liabilities.

Overall, the current ratio of LCI Industries has shown resilience over the years, reflective of the company's ability to manage its short-term financial obligations effectively while maintaining a balance between asset and liability management.