National Presto Industries Inc (NPK)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 360,110 | 326,632 | 348,053 | 357,240 | 337,833 |
| Total current liabilities | US$ in thousands | 72,019 | 53,641 | 53,159 | 55,092 | 39,295 |
| Current ratio | 5.00 | 6.09 | 6.55 | 6.48 | 8.60 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $360,110K ÷ $72,019K
= 5.00
The current ratio of National Presto Industries Inc has shown a decreasing trend over the past five years, declining from 8.60 in 2019 to 5.00 in 2023. Despite the fluctuations, the company's current ratio has generally remained above 1, indicating that it has had more than enough current assets to cover its current liabilities each year.
A current ratio above 1 is typically considered healthy as it suggests that the company can easily meet its short-term financial obligations. However, a decreasing trend in the current ratio could indicate potential liquidity challenges or inefficiencies in managing current assets and liabilities.
Therefore, although National Presto Industries Inc's current ratio remains above the acceptable threshold, management should closely monitor this trend and take appropriate actions to maintain adequate liquidity levels for the company's ongoing operations.
Peer comparison
Dec 31, 2023