RPC Inc (RES)
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 | 727,073 | 686,439 | 748,335 | 719,624 | 703,341 | 655,122 | 583,220 | 517,202 | 492,010 | 457,855 | 446,228 | 449,641 | 428,359 | 430,328 | 409,103 | 479,824 | 436,858 | 481,111 | 540,127 | 577,852 |
| Total current liabilities | US$ in thousands | 151,857 | 140,112 | 137,099 | 158,514 | 178,603 | 198,244 | 173,233 | 139,232 | 130,849 | 120,721 | 96,223 | 103,547 | 79,565 | 93,262 | 58,814 | 118,178 | 101,402 | 136,220 | 172,384 | 163,527 |
| Current ratio | 4.79 | 4.90 | 5.46 | 4.54 | 3.94 | 3.30 | 3.37 | 3.71 | 3.76 | 3.79 | 4.64 | 4.34 | 5.38 | 4.61 | 6.96 | 4.06 | 4.31 | 3.53 | 3.13 | 3.53 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $727,073K ÷ $151,857K
= 4.79
The current ratio of RPC, Inc. has shown a generally increasing trend over the past eight quarters, reflecting the company's ability to cover its short-term liabilities with its current assets. The current ratio was at its lowest in Q1 2022 at 3.71, and has since steadily increased to reach 5.46 in Q2 2023, indicating a more robust liquidity position.
Having a current ratio consistently above 1 signifies that RPC, Inc. has more than enough current assets to cover its current liabilities. This trend suggests that the company has sufficient liquidity to meet its short-term obligations and potentially take advantage of opportunities for growth or future investments. A higher current ratio is typically seen as a positive indicator of financial health and stability.
However, it is also important to consider the industry norms and benchmarking against competitors to get a better perspective on how RPC, Inc. is performing in terms of liquidity management. Additionally, further analysis of additional financial metrics and qualitative factors would provide a more comprehensive assessment of the company's overall financial position.
Peer comparison
Dec 31, 2023