RPM International Inc (RPM)
Current ratio
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,895,350 | 2,746,580 | 2,919,010 | 3,111,980 | 3,184,170 | 3,079,380 | 3,316,860 | 3,287,690 | 3,151,810 | 2,810,360 | 2,759,420 | 2,712,700 | 2,782,000 | 2,447,570 | 2,452,430 | 2,457,040 | 2,423,430 | 2,315,470 | 2,360,260 | 2,416,270 |
| Total current liabilities | US$ in thousands | 1,466,060 | 1,201,950 | 1,254,360 | 1,268,650 | 1,490,800 | 1,119,510 | 1,290,030 | 1,649,250 | 2,016,410 | 1,934,900 | 1,483,590 | 1,163,620 | 1,331,410 | 1,087,500 | 1,132,690 | 1,092,780 | 1,093,580 | 962,131 | 984,068 | 1,496,570 |
| Current ratio | 1.97 | 2.29 | 2.33 | 2.45 | 2.14 | 2.75 | 2.57 | 1.99 | 1.56 | 1.45 | 1.86 | 2.33 | 2.09 | 2.25 | 2.17 | 2.25 | 2.22 | 2.41 | 2.40 | 1.61 |
May 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,895,350K ÷ $1,466,060K
= 1.97
The current ratio of RPM International Inc has shown fluctuations over the past few quarters, ranging from a low of 1.45 to a high of 2.75. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A current ratio above 1 indicates that RPM International Inc has more current assets than current liabilities.
The current ratio peaked at 2.75 in February 2023, indicating a strong ability to cover short-term obligations. However, the ratio decreased to 1.45 in November 2021, suggesting a potential liquidity risk as current assets may not be sufficient to cover short-term liabilities. Since then, the ratio has generally improved, reaching 2.29 in February 2024.
It is important to note that while a high current ratio can signify a strong liquidity position, an excessively high ratio may indicate that the company is not efficiently utilizing its current assets. Conversely, a low current ratio may indicate potential financial difficulties in meeting short-term obligations. RPM International Inc should continue to monitor its current ratio to ensure it remains at a level that reflects a healthy balance between liquidity and efficient asset management.
Peer comparison
May 31, 2024