Owens Corning Inc (OC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,917,000 | 3,556,000 | 3,097,000 | 2,606,000 | 2,061,000 |
| Total current liabilities | US$ in thousands | 2,324,000 | 2,104,000 | 1,697,000 | 1,440,000 | 1,329,000 |
| Current ratio | 1.69 | 1.69 | 1.82 | 1.81 | 1.55 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,917,000K ÷ $2,324,000K
= 1.69
Owens Corning's current ratio has remained relatively stable over the past five years, ranging from 1.55 in 2019 to 1.82 in 2021. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is considered a positive sign of financial health.
Owens Corning's current ratio of 1.69 in both 2022 and 2023 reflects that the company has $1.69 in current assets for every dollar of current liabilities, indicating a strong liquidity position. Although the current ratio slightly decreased from 2021 to 2022, it remained at a healthy level. Overall, Owens Corning's current ratio suggests that the company is able to cover its short-term obligations effectively and efficiently.