Materion Corporation (MTRN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 709,382 | 690,448 | 627,252 | 463,999 | 537,747 |
| Total current liabilities | US$ in thousands | 254,995 | 238,964 | 204,509 | 126,884 | 122,440 |
| Current ratio | 2.78 | 2.89 | 3.07 | 3.66 | 4.39 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $709,382K ÷ $254,995K
= 2.78
The current ratio of Materion Corp has shown a decreasing trend over the past five years, declining from 4.02 in 2019 to 2.78 in 2023. This indicates that the company's ability to cover its short-term obligations with its current assets has weakened. While the current ratio is still above 1, suggesting the company has sufficient current assets to cover its current liabilities, the decreasing trend may be a cause for concern as it signifies a potential strain on liquidity. Further analysis of the company's current assets and liabilities is recommended to understand the underlying factors contributing to this decline and to assess the company's short-term financial health more accurately.