Packaging Corp of America (PKG)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,254,400 | 2,508,300 | 2,732,700 | 2,750,300 | 2,478,400 |
| Total current liabilities | US$ in thousands | 1,265,700 | 875,500 | 884,800 | 782,600 | 723,800 |
| Current ratio | 2.57 | 2.86 | 3.09 | 3.51 | 3.42 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,254,400K ÷ $1,265,700K
= 2.57
Packaging Corp Of America's current ratio has been declining over the past five years, from 3.42 in 2019 to 2.57 in 2023. This indicates a reduction in the company's short-term liquidity and ability to meet its current liabilities with current assets. A current ratio above 1 is generally considered healthy, so the company still maintains a comfortable level of liquidity in all years. However, the decreasing trend suggests a potential concern regarding the management of current assets and liabilities. It is important for the company to closely monitor its working capital management to ensure it can meet its short-term obligations efficiently.
Peer comparison
Dec 31, 2023