Spire Inc (SR)

Current ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Total current assets	US$ in thousands	771,300	1,076,900	1,592,000	1,316,500	590,600
Total current liabilities	US$ in thousands	1,703,900	1,755,400	2,353,600	1,608,300	1,449,200
Current ratio		0.45	0.61	0.68	0.82	0.41

September 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $771,300K ÷ $1,703,900K
= 0.45

Based on the data provided, Spire Inc's current ratio has fluctuated over the past five years. The current ratio measures a company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position.

In 2024, Spire Inc's current ratio was 0.45, indicating that it had $0.45 in current assets for every $1 in current liabilities. This represents a decline from the previous year when the current ratio was 0.61. The significant decrease in the current ratio from 2023 to 2024 may indicate that the company's ability to cover its short-term liabilities with its current assets has weakened.

Comparing the current ratio of 0.45 in 2024 to the ratios of 0.68 in 2022 and 0.82 in 2021, it is evident that the company's liquidity position has deteriorated over the years. The current ratio of 0.41 in 2020 was the lowest among the five years, suggesting a higher risk in meeting short-term obligations.

Overall, the decreasing trend in Spire Inc's current ratio over the past five years raises concerns about its short-term liquidity and ability to meet its immediate financial obligations. Further analysis of the company's current assets and liabilities is recommended to gain a deeper insight into its liquidity management.