Packaging Corp of America (PKG)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,233,000 | 3,254,400 | 2,508,300 | 2,732,700 | 2,750,300 |
| Total current liabilities | US$ in thousands | 1,001,600 | 1,265,700 | 875,500 | 884,800 | 782,600 |
| Current ratio | 3.23 | 2.57 | 2.86 | 3.09 | 3.51 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,233,000K ÷ $1,001,600K
= 3.23
Packaging Corp of America's current ratio has exhibited a decreasing trend over the past five years, with values of 3.51, 3.09, 2.86, 2.57, and 3.23 for the years ending December 31, 2020 to December 31, 2024, respectively. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.
Initially, the company had a comfortable current ratio of 3.51 in 2020, indicating a strong ability to meet its short-term obligations. However, this ratio declined consistently over the next few years, reaching a low of 2.57 in 2023, which could indicate potential liquidity concerns.
The increase in the current ratio to 3.23 in 2024 suggests an improvement in the company's short-term liquidity position, potentially due to better management of current assets and liabilities. Overall, Packaging Corp of America's current ratio fluctuations should be further investigated to understand the underlying reasons for the changes and assess the company's overall financial health.
Peer comparison
Dec 31, 2024