RPM International Inc (RPM)
Current ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,895,350 | 3,184,170 | 3,151,810 | 2,782,000 | 2,423,430 |
| Total current liabilities | US$ in thousands | 1,466,060 | 1,490,800 | 2,016,410 | 1,331,410 | 1,093,580 |
| Current ratio | 1.97 | 2.14 | 1.56 | 2.09 | 2.22 |
May 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,895,350K ÷ $1,466,060K
= 1.97
The current ratio for RPM International Inc has fluctuated over the past five years. In 2024, the current ratio stands at 1.97, down from 2.14 in 2023 and 2.09 in 2021, but higher than the 1.56 reported in 2022. This ratio indicates that for every dollar of current liabilities, the company has $1.97 in current assets available to cover those obligations.
A current ratio of less than 1 may suggest potential liquidity issues, while a ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign of financial health.
Although the current ratio has declined slightly in 2024 compared to the previous year, it still remains above 1, indicating that RPM International Inc is generally able to cover its short-term obligations. It is important for the company to continue monitoring and managing its liquidity position to ensure it can meet its current liabilities as they come due.
Peer comparison
May 31, 2024