RPC Inc (RES)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 727,073 | 703,341 | 492,010 | 428,359 | 436,858 |
| Total current liabilities | US$ in thousands | 151,857 | 178,603 | 130,849 | 79,565 | 101,402 |
| Current ratio | 4.79 | 3.94 | 3.76 | 5.38 | 4.31 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $727,073K ÷ $151,857K
= 4.79
The current ratio indicates RPC, Inc.'s ability to cover its short-term liabilities with its current assets. The trend of the current ratio over the past five years shows an overall fluctuation. In 2023, the current ratio rose to 4.79 from 3.94 in 2022, indicating a significant improvement in the company's liquidity position. This increase suggests that RPC, Inc. had more than enough current assets to cover its short-term obligations in 2023.
Comparing this to previous years, the current ratio in 2023 was higher than in 2021 and 2019, indicating better liquidity. However, in 2020, the current ratio was higher compared to 2023, suggesting that the company may have had even stronger liquidity in that year. Overall, while the current ratio has shown fluctuations, the upward trend in 2023 is a positive sign for RPC, Inc.'s short-term liquidity position. Investors and creditors may view this improvement favorably as it indicates the company's ability to meet its short-term obligations more comfortably.
Peer comparison
Dec 31, 2023