Nextracker Inc. Class A Common Stock (NXT)

Current ratio

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022
Total current assets	US$ in thousands	1,768,240	1,418,960	1,338,780	1,116,810	872,265	954,337
Total current liabilities	US$ in thousands	891,486	759,437	772,210	676,138	507,426	604,612
Current ratio		1.98	1.87	1.73	1.65	1.72	1.58

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,768,240K ÷ $891,486K
= 1.98

The current ratio of Nextracker Inc. Class A Common Stock has shown a generally increasing trend over the past six quarters, from 1.58 as of December 31, 2022, to 1.98 as of March 31, 2024. This indicates that the company's current assets have been progressively improving in relation to its current liabilities.

A current ratio above 1 suggests that the company's current assets are sufficient to cover its current liabilities. The upward trend in the current ratio reflects an improvement in the company's liquidity position, indicating its ability to meet short-term obligations and expenses. However, it is important to note that while an increasing current ratio is generally positive, excessively high ratios may imply inefficient use of assets.

Overall, the consistent increase in Nextracker Inc.'s current ratio signifies a strengthening financial position in terms of liquidity and short-term solvency over the analyzed period.