ODP Corp (ODP)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,678,000 | 1,910,000 | 2,389,000 | 2,355,000 | 3,447,000 |
| Total current liabilities | US$ in thousands | 1,693,000 | 1,859,000 | 2,265,000 | 2,093,000 | 3,094,000 |
| Current ratio | 0.99 | 1.03 | 1.05 | 1.13 | 1.11 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,678,000K ÷ $1,693,000K
= 0.99
The current ratio of ODP Corp has exhibited a declining trend over the last five years, decreasing from 1.11 in 2019 to 0.99 in 2023. This indicates that the company's current assets may be decreasing relative to its current liabilities, which could potentially raise concerns regarding the company's ability to meet its short-term obligations. While a current ratio above 1.0 typically indicates that a company can cover its short-term liabilities with its current assets, the downward trend in ODP Corp's current ratio suggests a weakening liquidity position over the years. Further analysis of the company's assets and liabilities composition and potential causes behind the declining current ratio would be necessary to fully understand the implications for ODP Corp's financial health.
Peer comparison
Dec 31, 2023