Matson Inc (MATX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 602,300 | 759,600 | 704,500 | 305,900 | 289,600 |
| Total current liabilities | US$ in thousands | 562,300 | 581,600 | 612,400 | 511,500 | 436,700 |
| Current ratio | 1.07 | 1.31 | 1.15 | 0.60 | 0.66 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $602,300K ÷ $562,300K
= 1.07
The current ratio of Matson Inc has shown fluctuations over the past five years. As of December 31, 2023, the current ratio stands at 1.07, which indicates that the company's current assets are slightly more than its current liabilities.
Comparing this to the previous years, a downward trend is observed from 1.31 in 2022 to 1.15 in 2021, and a significant improvement from 0.60 in 2020 to 0.66 in 2019. The fluctuating trend suggests potential variability in the company's liquidity position and its ability to meet short-term obligations.
A current ratio above 1 is generally considered favorable as it implies the company has more current assets than liabilities to cover its short-term obligations. However, consistently high current ratios could also indicate an inefficient use of resources. Conversely, a current ratio below 1 may raise concerns about the company's liquidity and ability to cover short-term debts.
Overall, while the current ratio of Matson Inc has improved from the previous year, further analysis of the company's liquidity position, cash flow, and operating cycle would provide a more comprehensive understanding of its financial health.
Peer comparison
Dec 31, 2023