Materion Corporation (MTRN)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 724,224 | 709,382 | 690,448 | 627,252 | 463,999 |
| Total current liabilities | US$ in thousands | 226,734 | 254,995 | 238,964 | 204,509 | 126,884 |
| Current ratio | 3.19 | 2.78 | 2.89 | 3.07 | 3.66 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $724,224K ÷ $226,734K
= 3.19
Based on the provided data, Materion Corporation's current ratio has exhibited a downward trend over the past five years. The current ratio stood at 3.66 as of December 31, 2020, indicating strong short-term liquidity. However, there was a gradual decline in subsequent years, with the ratio decreasing to 3.07 by December 31, 2021, 2.89 by December 31, 2022, 2.78 by December 31, 2023, and then rebounding to 3.19 by December 31, 2024.
Despite the fluctuations, Materion Corporation's current ratio remained above 2.0 throughout the period, which generally suggests that the company has a strong ability to meet its short-term obligations using its current assets. However, the decreasing trend from 2020 to 2023 may indicate potential challenges in managing current liabilities or a shift in the composition of current assets and liabilities. The rebound in 2024 shows improvement in short-term liquidity compared to the previous year.
Overall, Materion Corporation's current ratio analysis highlights the importance of monitoring changes in liquidity position to ensure the company can effectively manage its short-term financial obligations.