Resideo Technologies Inc (REZI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,743,000 | 2,502,000 | 2,541,000 | 2,225,000 | 1,785,000 |
| Total current liabilities | US$ in thousands | 1,525,000 | 1,546,000 | 1,494,000 | 1,538,000 | 1,494,000 |
| Current ratio | 1.80 | 1.62 | 1.70 | 1.45 | 1.19 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,743,000K ÷ $1,525,000K
= 1.80
The current ratio of Resideo Technologies Inc has shown a general upward trend over the past five years, indicating an improvement in the company's short-term liquidity position. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, increased from 1.19 in 2019 to 1.80 in 2023.
A current ratio above 1 indicates that the company has sufficient current assets to cover its current liabilities. Resideo Technologies Inc has consistently maintained a current ratio above 1 over the five-year period, suggesting a healthy liquidity position.
The current ratio peaked at 1.80 in 2023, which may indicate that the company has strengthened its liquidity position by increasing its current assets relative to its current liabilities. This could be attributed to effective management of working capital, improved cash flow management, or prudent financial decision-making.
Overall, the increasing trend in Resideo Technologies Inc's current ratio signals a positive outlook for the company's short-term financial health and ability to meet its current obligations.