PHINIA Inc. (PHIN)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,841,000 | 1,976,000 | 1,917,000 |
| Total current liabilities | US$ in thousands | 969,000 | 1,022,000 | 1,122,000 |
| Current ratio | 1.90 | 1.93 | 1.71 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,841,000K ÷ $969,000K
= 1.90
The current ratio of PHINIA Inc. has shown a positive trend over the past year, increasing from 1.71 as of March 31, 2024, to 1.93 as of September 30, 2024, and then slightly decreasing to 1.90 as of December 31, 2024.
A current ratio above 1 indicates that the company's current assets are sufficient to cover its current liabilities. As such, PHINIA Inc. has maintained a healthy liquidity position throughout the year, with a ratio consistently above 1. This implies the company is capable of meeting its short-term obligations using its current assets.
While the slight decrease in the current ratio from September to December suggests a potential decrease in liquidity, the ratio still remains above 1, indicating that PHINIA Inc. is overall in a strong financial position in terms of short-term liquidity. It is important for the company to continue monitoring its current assets and liabilities to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024