RPC Inc (RES)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	732,842	727,073	703,341	492,010	428,359
Total current liabilities	US$ in thousands	181,913	151,857	178,603	130,849	79,565
Current ratio		4.03	4.79	3.94	3.76	5.38

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $732,842K ÷ $181,913K
= 4.03

Based on the data provided for RPC Inc's current ratio over the past five years, we can observe fluctuations in the company's short-term liquidity position. The current ratio, which represents the company's ability to meet its short-term obligations with its current assets, was 5.38 as of December 31, 2020. This indicates that RPC Inc had $5.38 in current assets for every $1 of current liabilities, reflecting a strong liquidity position.

However, there was a decrease in the current ratio to 3.76 as of December 31, 2021, suggesting a potential decline in the company's ability to cover its short-term liabilities with current assets. This may raise concerns about the company's liquidity management.

Subsequently, there was a slight improvement in the current ratio to 3.94 as of December 31, 2022, indicating a better liquidity position compared to the previous year. This improvement may suggest that RPC Inc took measures to enhance its short-term liquidity.

By December 31, 2023, the current ratio increased to 4.79, reflecting a significant improvement in the company's ability to meet its short-term obligations with current assets. This higher ratio indicates a stronger liquidity position for RPC Inc.

However, by December 31, 2024, the current ratio decreased to 4.03, showing a slight decline compared to the previous year. While the ratio is still relatively high, the downward trend may warrant further analysis to understand the factors driving this change in liquidity.

Overall, RPC Inc's current ratio has shown fluctuations over the past five years, with a mix of improvements and declines in its short-term liquidity position. The company may need to closely monitor its current assets and liabilities to ensure optimal liquidity management in the future.