Matson Inc (MATX)

Current ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	602,300	635,800	577,800	566,700	759,600	874,500	1,112,700	874,800	704,500	481,700	402,700	313,900	305,900	289,600	273,600	308,700	289,600	299,500	289,600	306,600
Total current liabilities	US$ in thousands	562,300	570,600	549,000	535,800	581,600	599,900	632,100	610,200	612,400	547,300	532,300	519,100	511,500	453,600	449,600	470,900	436,700	437,700	425,400	411,100
Current ratio		1.07	1.11	1.05	1.06	1.31	1.46	1.76	1.43	1.15	0.88	0.76	0.60	0.60	0.64	0.61	0.66	0.66	0.68	0.68	0.75

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $602,300K ÷ $562,300K
= 1.07

The current ratio is a key liquidity ratio that indicates a company's ability to meet its short-term obligations with its current assets. A higher current ratio generally suggests stronger liquidity and a better ability to cover short-term liabilities.

Analyzing Matson Inc's current ratio over the past 8 quarters reveals a fluctuating trend. In Q4 2023, the current ratio was 1.07, which suggests that the company had just enough current assets to cover its current liabilities. This ratio decreased from the previous quarter, Q3 2023, where it stood at 1.11.

Looking back further, there was a significant decrease in the current ratio from Q4 2022 (1.31) to Q1 2023 (1.06), indicating a potential liquidity strain during that period. However, there was a gradual improvement in the current ratio from Q1 2023 to Q2 2023, reaching a peak of 1.76 in Q2 2022 before declining again.

The downward trend in the current ratio may raise concerns about Matson Inc's ability to pay off its short-term obligations in the near term. It is essential for the company to closely monitor its liquidity position and ensure that it maintains an adequate level of current assets to cover its current liabilities.

In conclusion, the fluctuating current ratio of Matson Inc over the past 8 quarters highlights the importance of consistent liquidity management to mitigate potential financial risks and ensure the company's financial health.