Callaway Golf Company (MODG)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,628,100 | 1,518,900 | 1,165,700 | 912,627 | 789,350 |
| Total current liabilities | US$ in thousands | 947,600 | 1,176,200 | 866,000 | 391,272 | 523,246 |
| Current ratio | 1.72 | 1.29 | 1.35 | 2.33 | 1.51 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,628,100K ÷ $947,600K
= 1.72
The current ratio of Topgolf Callaway Brands Corp has fluctuated over the past five years, indicating varying levels of liquidity and ability to cover short-term obligations. In 2023, the current ratio improved to 1.72 from 1.29 in 2022, suggesting a stronger liquidity position compared to the previous year. However, it is still lower than the levels seen in 2020 and 2019.
A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered positive. A ratio of 1.72 means that the company had $1.72 in current assets for every $1 in current liabilities in 2023. This implies that Topgolf Callaway Brands Corp has sufficient short-term assets to cover its short-term obligations.
It is important to consider the trend of the current ratio over multiple years to assess the company's ability to manage its short-term financial obligations effectively. Further analysis of the underlying components contributing to the current ratio, such as inventories, accounts receivable, and accounts payable, may provide deeper insights into the company's liquidity position.
Peer comparison
Dec 31, 2023