Owens Corning Inc (OC)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,378,000 | 3,917,000 | 3,556,000 | 3,097,000 | 2,606,000 |
| Total current liabilities | US$ in thousands | 2,297,000 | 2,324,000 | 2,104,000 | 1,697,000 | 1,440,000 |
| Current ratio | 1.47 | 1.69 | 1.69 | 1.82 | 1.81 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,378,000K ÷ $2,297,000K
= 1.47
Based on the provided data, Owens Corning Inc's current ratio, which measures the company's ability to meet its short-term liabilities with its short-term assets, has shown a slight fluctuation over the past five years.
As of December 31, 2020, the current ratio was at 1.81, indicating that the company had $1.81 in current assets for every $1 of current liabilities. This ratio increased slightly to 1.82 by December 31, 2021, reflecting improved liquidity.
However, the current ratio decreased to 1.69 as of both December 31, 2022, and December 31, 2023, suggesting a potential strain on the company's ability to cover short-term obligations with its current assets. This could be a concern for investors and creditors as it may signal a reduced ability to meet upcoming financial obligations without relying on external sources of funding.
By the end of December 31, 2024, the current ratio declined further to 1.47, indicating a significant decrease in liquidity compared to the previous years. A current ratio below 2 may raise questions about the company's liquidity and ability to manage short-term financial obligations efficiently.
Overall, the trend in Owens Corning Inc's current ratio indicates some fluctuations, with a general decrease in liquidity over the past few years, which may warrant further investigation into the company's financial health and risk management strategies.