Matthews International Corporation (MATW)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 632,543 | 648,257 | 628,616 | 624,165 | 575,573 |
| Total current liabilities | US$ in thousands | 434,775 | 394,600 | 411,375 | 354,225 | 316,868 |
| Current ratio | 1.45 | 1.64 | 1.53 | 1.76 | 1.82 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $632,543K ÷ $434,775K
= 1.45
The current ratio of Matthews International Corporation has displayed some fluctuations over the past five years. The ratio decreased from 1.82 in 2020 to 1.45 in 2024, indicating a potential weakening in the company's short-term liquidity position. A current ratio below 1 would typically raise concerns about the company's ability to meet its short-term obligations.
Although the ratio has varied, it has generally remained above 1 in each year, implying that the company has had sufficient current assets to cover its current liabilities. However, the downward trend over the years suggests that the company may have been less able to cover its short-term obligations with its current assets in 2024 compared to previous years.
It is important for Matthews International Corporation to carefully monitor its current ratio and take appropriate measures if it continues to decline, to ensure the stability of its financial position and ability to meet its short-term obligations.