Rollins Inc (ROL)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 406,639 | 348,619 | 352,380 | 314,777 | 309,787 |
| Total current liabilities | US$ in thousands | 576,689 | 493,784 | 491,162 | 472,511 | 410,035 |
| Current ratio | 0.71 | 0.71 | 0.72 | 0.67 | 0.76 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $406,639K ÷ $576,689K
= 0.71
The current ratio for Rollins, Inc. has been fluctuating over the past five years. As of December 31, 2023, the current ratio stands at 0.71, which indicates that the company may have difficulties meeting its short-term obligations with its current assets alone. This ratio has remained relatively stable around the 0.70 to 0.76 range since 2019.
While an ideal current ratio is typically considered to be around 1.0 or higher, Rollins, Inc.'s current ratio suggests a trend of having fewer current assets relative to its current liabilities. This may raise concerns about the company's liquidity position and its ability to cover immediate financial obligations. Further analysis of the components of current assets and current liabilities is warranted to gain a more detailed understanding of Rollins, Inc.'s liquidity management.
Peer comparison
Dec 31, 2023