Mercer International Inc (MERC)
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 | 1,092,900 | 1,064,500 | 999,345 | 1,195,840 | 1,178,180 | 1,096,690 | 1,169,110 | 1,169,380 | 1,064,300 | 952,276 | 937,601 | 935,079 | 874,852 | 834,480 | 783,636 | 788,553 | 844,697 | 783,008 | 837,892 | 843,751 |
| Total current liabilities | US$ in thousands | 286,437 | 267,866 | 370,464 | 382,678 | 378,061 | 323,093 | 273,904 | 281,184 | 283,124 | 256,491 | 265,364 | 230,183 | 211,796 | 200,716 | 196,954 | 185,143 | 256,312 | 204,057 | 223,103 | 212,256 |
| Current ratio | 3.82 | 3.97 | 2.70 | 3.12 | 3.12 | 3.39 | 4.27 | 4.16 | 3.76 | 3.71 | 3.53 | 4.06 | 4.13 | 4.16 | 3.98 | 4.26 | 3.30 | 3.84 | 3.76 | 3.98 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,092,900K ÷ $286,437K
= 3.82
The current ratio of Mercer International Inc. has shown variability over the past eight quarters, ranging from a low of 2.70 in Q2 2023 to a high of 4.27 in Q2 2022. Overall, the current ratio has generally been above 3.0, indicating that the company has more than enough current assets to cover its current liabilities.
The significant decrease in the current ratio to 2.70 in Q2 2023 may indicate a potential liquidity concern, as the company may be less able to meet its short-term obligations with its current assets during that period. However, it is worth noting that the current ratio improved in subsequent quarters, reaching 3.97 in Q3 2023 and 3.82 in Q4 2023.
The consistently high current ratios in 2022, with values above 4.0, suggest that Mercer International Inc. had a strong liquidity position during that period, with ample current assets to cover short-term liabilities. This may indicate effective management of working capital and a healthy financial position.
In conclusion, while there has been some fluctuation in the current ratio of Mercer International Inc. in recent quarters, overall, the company has generally maintained a healthy liquidity position, which is crucial for meeting its short-term financial obligations. Investors and stakeholders should continue to monitor the company's current ratio to assess its liquidity and financial health.