Packaging Corp of America (PKG)
Current ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 2,478,400 | 2,531,300 | 2,402,700 | 2,262,400 |
| Total current liabilities | US$ in thousands | 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 | 723,800 | 770,700 | 729,600 | 740,700 |
| Current ratio | 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 | 3.42 | 3.28 | 3.29 | 3.05 |
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 shown some fluctuations over the past eight quarters. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates better short-term liquidity and financial health.
In Q4 2023, the current ratio was 2.57, which is higher than the previous quarter (Q3 2023) where it was 2.17. This suggests that the company had more current assets relative to its current liabilities in the latest quarter, indicating improved liquidity.
Looking at the trend over the past quarters, Packaging Corp Of America experienced a peak in liquidity in Q2 2023 with a current ratio of 3.35, followed by a slight decline in Q3 and a subsequent increase in Q4. This pattern suggests that the company may have efficiently managed its short-term obligations during these periods.
Comparing the current ratio to the same period in the previous year, Q4 2023 (2.57) is slightly lower than Q4 2022 (2.86). While the current ratio has fluctuated, remaining above 2.0 in all quarters indicates that the company generally has a healthy level of current assets to cover its short-term liabilities.
Overall, fluctuations in the current ratio for Packaging Corp Of America indicate varying levels of short-term liquidity but generally reflect a sound financial position in managing its current obligations.
Peer comparison
Dec 31, 2023