Mettler-Toledo International Inc (MTD)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	1,230,200	1,375,090	1,269,360	1,056,900	1,109,650
Total current liabilities	US$ in thousands	1,181,080	1,147,730	1,146,540	840,327	754,512
Current ratio		1.04	1.20	1.11	1.26	1.47

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,230,200K ÷ $1,181,080K
= 1.04

The current ratio of Mettler-Toledo International, Inc. has exhibited a declining trend over the past five years, decreasing from 1.47 in 2019 to 1.04 in 2023. This indicates that the company's liquidity position has weakened over this period. A current ratio below 1.0 generally suggests that a company may have difficulty meeting its short-term obligations with its current assets alone.

The current ratio of 1.04 in 2023 implies that Mettler-Toledo International, Inc. has $1.04 in current assets for every $1.00 in current liabilities. While the ratio is above 1.0, indicating the company can cover its short-term obligations, it is getting closer to the threshold of potentially facing liquidity challenges.

Investors and creditors may view the declining current ratio as a cause for concern, as it may signal difficulties in managing current liabilities or converting current assets into cash. Management should monitor this trend closely and take appropriate actions to address any liquidity risks that may arise from the downward trajectory of the current ratio.