Packaging Corp of America (PKG)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,233,000 | 3,241,400 | 3,483,900 | 3,445,100 | 3,254,400 | 2,773,300 | 2,670,600 | 2,585,400 | 2,508,300 | 2,907,500 | 2,990,400 | 2,869,400 | 2,732,700 | 3,804,800 | 2,961,100 | 2,856,900 | 2,750,300 | 2,743,700 | 2,659,000 | 2,613,600 |
| Total current liabilities | US$ in thousands | 1,001,600 | 1,100,500 | 1,431,500 | 1,400,300 | 1,265,700 | 1,278,900 | 797,700 | 828,900 | 875,500 | 963,400 | 972,900 | 967,900 | 884,800 | 1,644,400 | 816,800 | 805,800 | 782,600 | 775,400 | 683,600 | 744,600 |
| Current ratio | 3.23 | 2.95 | 2.43 | 2.46 | 2.57 | 2.17 | 3.35 | 3.12 | 2.86 | 3.02 | 3.07 | 2.96 | 3.09 | 2.31 | 3.63 | 3.55 | 3.51 | 3.54 | 3.89 | 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 shown fluctuation over the past few years, indicating variations in its short-term liquidity position. The current ratio measures the company's ability to meet its short-term obligations with its current assets.
From March 2020 to June 2021, the current ratio consistently remained above 3, indicating a strong ability to cover short-term liabilities. However, there was a noticeable decline in the ratio in the subsequent quarters, falling to 2.31 in September 2021. This could suggest potential challenges in meeting its short-term obligations during that period.
Although there were some fluctuations in the current ratio in the following quarters, it generally remained above 3 until September 2023 when it dropped to 2.17, which could again indicate potential liquidity concerns. The ratio recovered slightly in the subsequent quarters but remained below the previous levels, hovering around 2.5 to 3.
Overall, it is essential for Packaging Corp of America to carefully monitor its current ratio and ensure it maintains a healthy level of liquidity to meet its short-term obligations in a timely manner. Further analysis of the company's current asset composition and management of current liabilities may provide additional insights into its short-term liquidity position.
Peer comparison
Dec 31, 2024