Mister Car Wash Inc (MCW)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Total current assets | US$ in thousands | 60,894 | 106,137 | 58,844 |
| Total current liabilities | US$ in thousands | 169,561 | 154,493 | 130,229 |
| Current ratio | 0.36 | 0.69 | 0.45 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $60,894K ÷ $169,561K
= 0.36
Mister Car Wash Inc's current ratio has exhibited a decline over the past three years, indicating a weakening capacity to meet its short-term obligations with its current assets. The current ratio stood at 0.36 as of December 31, 2023, significantly lower than the 0.69 reported in 2022 and the 0.45 in 2021. This downward trend raises concerns about the company's liquidity position and ability to cover its current liabilities using its current assets. An ideal current ratio is generally considered to be around 2, as it suggests that the company has enough current assets to cover its current liabilities with a comfortable buffer. Therefore, Mister Car Wash Inc may need to take measures to improve its liquidity management and ensure its ability to meet short-term financial obligations effectively.
Peer comparison
Dec 31, 2023