Resideo Technologies Inc (REZI)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,172,000 | 2,743,000 | 2,502,000 | 2,541,000 | 2,225,000 |
| Total current liabilities | US$ in thousands | 1,790,000 | 1,525,000 | 1,546,000 | 1,494,000 | 1,538,000 |
| Current ratio | 1.77 | 1.80 | 1.62 | 1.70 | 1.45 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,172,000K ÷ $1,790,000K
= 1.77
The current ratio for Resideo Technologies Inc has exhibited a generally positive trend over the past five years. Starting at 1.45 on December 31, 2020, the ratio has gradually increased to 1.77 by December 31, 2024, indicating the company's improving ability to meet its short-term obligations with its current assets.
A current ratio above 1 suggests that the company has more current assets than current liabilities, which is a positive indicator of financial health and liquidity. Resideo's current ratio consistently above 1 over the years demonstrates its ability to cover its short-term debts comfortably.
Although the ratio fluctuated slightly between 1.62 and a high of 1.80 during the observed period, the overall trend reflects a stable financial position in terms of short-term liquidity for Resideo Technologies Inc. This indicates the company's capacity to manage its day-to-day operations efficiently and suggests a lower risk of financial distress in the near term.