Mettler-Toledo International Inc (MTD)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,193,910 | 1,230,200 | 1,375,090 | 1,269,360 | 1,056,900 |
| Total current liabilities | US$ in thousands | 1,168,190 | 1,181,080 | 1,147,730 | 1,146,540 | 840,327 |
| Current ratio | 1.02 | 1.04 | 1.20 | 1.11 | 1.26 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,193,910K ÷ $1,168,190K
= 1.02
The current ratio of Mettler-Toledo International Inc has shown fluctuation over the past five years. Starting at 1.26 on December 31, 2020, the ratio decreased to 1.11 by December 31, 2021, indicating a potential decrease in the company's short-term liquidity. However, there was a slight improvement to 1.20 by December 31, 2022, suggesting better ability to cover its short-term obligations.
Subsequently, a notable decrease in the current ratio was observed, with a ratio of 1.04 by December 31, 2023, followed by a further reduction to 1.02 by December 31, 2024. These decreases may raise concerns about the company's liquidity position as it indicates a decreasing ability to meet short-term obligations with current assets.
Overall, while the current ratio has fluctuated over the five-year period, it is essential for stakeholders to further investigate the underlying reasons for these fluctuations to assess the company's short-term liquidity risk and financial health accurately.
Peer comparison
Dec 31, 2024