NXP Semiconductors NV (NXPI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,864,000 | 6,935,000 | 5,228,000 | 4,324,000 | 3,267,000 |
| Total current liabilities | US$ in thousands | 4,111,000 | 3,270,000 | 2,452,000 | 2,017,000 | 1,791,000 |
| Current ratio | 1.91 | 2.12 | 2.13 | 2.14 | 1.82 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,864,000K ÷ $4,111,000K
= 1.91
The current ratio of NXP Semiconductors NV has exhibited a slight decrease over the years, from 2.14 in 2020 to 1.91 in 2023. This indicates a reduction in the company's ability to cover its short-term liabilities with its current assets over the period. While the current ratio remains above 1.0, suggesting that the company is still capable of meeting its short-term obligations, the declining trend should be monitored closely.
A current ratio above 1.0 is generally considered favorable as it signifies that the company's current assets are sufficient to cover its current liabilities. However, a high current ratio may also indicate that the company is not efficiently utilizing its current assets to generate revenue.
In the case of NXP Semiconductors NV, the current ratio has shown some fluctuations but has mostly remained above 2.0 in recent years, indicating a strong liquidity position. Nevertheless, the slight downward trend in the current ratio warrants further investigation into the company's current asset management and liquidity management strategies to ensure sustained financial health and stability.
Peer comparison
Dec 31, 2023