Photronics Inc (PLAB)
Current ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 931,062 | 785,450 | 644,652 | 550,616 | 500,139 |
| Total current liabilities | US$ in thousands | 183,811 | 185,223 | 193,797 | 176,148 | 142,939 |
| Current ratio | 5.07 | 4.24 | 3.33 | 3.13 | 3.50 |
October 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $931,062K ÷ $183,811K
= 5.07
The current ratio of Photronics Inc has exhibited a positive trend over the past five years, increasing from 3.50 in 2020 to 5.07 in 2024. This indicates that the company's current assets have been progressively increasing in relation to its current liabilities, reflecting strong liquidity and the ability to meet short-term obligations. A current ratio above 1.0 is generally considered favorable, as it suggests that the company has more than enough current assets to cover its current liabilities.
The current ratio surpassing 5.0 in 2024 indicates a significant improvement in liquidity and financial health compared to earlier years. This may imply efficient management of working capital, prudent financial management practices, or a shift in the composition of current assets towards more liquid and easily convertible assets. Overall, the trend of increasing current ratio demonstrates a strengthening financial position for Photronics Inc and suggests a reduced risk of liquidity issues in meeting its short-term obligations.
Peer comparison
Oct 31, 2024