Envista Holdings Corp (NVST)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,788,300 | 1,743,700 | 1,424,600 | 1,835,800 | 1,590,600 |
| Total current liabilities | US$ in thousands | 878,700 | 780,800 | 1,236,700 | 1,208,200 | 1,684,700 |
| Current ratio | 2.04 | 2.23 | 1.15 | 1.52 | 0.94 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,788,300K ÷ $878,700K
= 2.04
Based on the data provided, Envista Holdings Corp's current ratio has shown fluctuations over the past five years. The current ratio measures a company's ability to meet its short-term obligations with its current assets.
As of December 31, 2020, the current ratio was below 1 at 0.94, indicating that the company may have had difficulties in meeting its short-term liabilities with its current assets alone. However, there seems to have been an improvement in the company's liquidity position as the current ratio increased to 1.52 by December 31, 2021.
In the following years, the current ratio continued to fluctuate, with a decrease to 1.15 by the end of 2022, followed by a significant improvement to 2.23 by December 31, 2023. This sharp increase suggests that Envista Holdings Corp had a higher level of current assets relative to its current liabilities, indicating a stronger liquidity position.
However, by the end of 2024, the current ratio had decreased slightly to 2.04, although it remained above the ideal threshold of 1. This suggests that the company still had a strong ability to cover its short-term obligations with its current assets by the end of the period.
Overall, the trend in Envista Holdings Corp's current ratio indicates fluctuations in the company's liquidity position over the past five years, with improvements in certain years and minor declines in others. It is essential for the company to maintain a healthy current ratio to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024