Dorian LPG Ltd (LPG)
Current ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 368,882 | 236,299 | 307,893 | 153,343 | 139,615 |
| Total current liabilities | US$ in thousands | 101,813 | 94,597 | 94,837 | 82,081 | 85,013 |
| Current ratio | 3.62 | 2.50 | 3.25 | 1.87 | 1.64 |
March 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $368,882K ÷ $101,813K
= 3.62
The current ratio of Dorian LPG Ltd has exhibited an increasing trend over the past five years, indicating an improvement in the company's short-term liquidity position. The company's current ratio has risen from 1.64 in March 2020 to 3.62 in March 2024. This suggests that the company now has significantly more current assets relative to its current liabilities, providing a strong indication that it can cover its short-term obligations efficiently. The current ratio exceeding 1 indicates that the company has more assets than liabilities due within the next year, minimizing the risk of insolvency. Overall, the increasing current ratio reflects a positive liquidity position for Dorian LPG Ltd and signifies its ability to meet short-term financial obligations effectively.