Patterson Companies Inc (PDCO)
Current ratio
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | Apr 24, 2021 | Apr 25, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,778,760 | 1,783,140 | 1,679,020 | 1,615,930 | 1,542,760 |
| Total current liabilities | US$ in thousands | 1,332,550 | 1,085,330 | 1,015,670 | 1,089,670 | 1,074,900 |
| Current ratio | 1.33 | 1.64 | 1.65 | 1.48 | 1.44 |
April 27, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,778,760K ÷ $1,332,550K
= 1.33
Based on the historical data provided for Patterson Companies Inc's current ratio, we observe fluctuations over the past five years. The current ratio, which measures the company's ability to meet its short-term liabilities with its current assets, was 1.33 in April 2024, down from 1.64 in April 2023 and 1.65 in April 2022. This downward trend implies a potential weakening in the company's liquidity position in the most recent period.
Although the current ratio of 1.33 in April 2024 is still above 1, indicating that the company possesses more current assets than current liabilities, the decreasing trend over the past few years may raise concerns about its liquidity management. It is crucial for Patterson Companies Inc to analyze the underlying reasons for the decline in the current ratio and consider strategies to improve its liquidity position, such as optimizing inventory management, managing accounts receivable efficiently, or assessing its current debt levels.
Further investigation into the components of current assets and liabilities contributing to this ratio would provide more insights into the company's short-term financial health and sustainability. It is essential for stakeholders and investors to monitor Patterson Companies Inc's current ratio closely to assess its ability to meet its short-term obligations and make informed decisions about the company's financial performance and stability.
Peer comparison
Apr 27, 2024