Simpson Manufacturing Company Inc (SSD)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,312,440 | 1,179,250 | 998,835 | 753,139 | 640,907 |
| Total current liabilities | US$ in thousands | 361,257 | 348,563 | 244,602 | 194,061 | 158,907 |
| Current ratio | 3.63 | 3.38 | 4.08 | 3.88 | 4.03 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,312,440K ÷ $361,257K
= 3.63
The current ratio of Simpson Manufacturing Co., Inc. has exhibited some fluctuations over the past five years. The ratio has generally been at healthy levels above 3, indicating the company's ability to cover its short-term liabilities with its current assets.
In the most recent year, as of Dec 31, 2023, the current ratio stands at 3.63, indicating a slight increase from the previous year. This suggests that the company has improved its liquidity position compared to the previous year, with a higher level of current assets relative to current liabilities.
Looking back over the five-year period, the current ratio has ranged from a low of 3.38 in Dec 31, 2022, to a high of 4.08 in Dec 31, 2021. This variance may indicate some fluctuations in the company's short-term asset and liability management during this period.
Overall, the company's current ratio trend indicates a generally strong liquidity position, with the ability to meet its short-term obligations comfortably. However, it would be beneficial for the company to consistently maintain a current ratio above 3 to ensure continued financial health and flexibility in managing its short-term obligations.
Peer comparison
Dec 31, 2023