ScanSource Inc (SCSC)
Current ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,404,700 | 1,657,080 | 1,523,800 | 1,219,640 | 1,203,470 |
| Total current liabilities | US$ in thousands | 669,352 | 786,801 | 814,264 | 732,939 | 719,007 |
| Current ratio | 2.10 | 2.11 | 1.87 | 1.66 | 1.67 |
June 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,404,700K ÷ $669,352K
= 2.10
ScanSource Inc's current ratio has shown a fluctuating trend over the past five years. 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 the company has more current assets than current liabilities.
In the most recent fiscal year (ending June 30, 2024), ScanSource Inc's current ratio was 2.10, slightly lower than the previous year's ratio of 2.11. This implies the company had $2.10 in current assets for every $1 of current liabilities, indicating a healthy liquidity position.
Comparing the current ratio to prior years, there has been an improving trend since 2021 when the ratio was 1.66. This suggests that the company has strengthened its liquidity position over time, which is generally a positive sign for investors and creditors.
However, it is important to note that while a high current ratio indicates good short-term financial health, an excessively high ratio may imply that the company is not efficiently utilizing its current assets. Therefore, it is essential to consider other aspects of the company's financial health in conjunction with the current ratio when evaluating its overall liquidity position.
Peer comparison
Jun 30, 2024