Simpson Manufacturing Company Inc (SSD)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,176,320 | 1,312,440 | 1,179,250 | 998,835 | 753,139 |
| Total current liabilities | US$ in thousands | 366,348 | 361,257 | 348,563 | 244,602 | 194,061 |
| Current ratio | 3.21 | 3.63 | 3.38 | 4.08 | 3.88 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,176,320K ÷ $366,348K
= 3.21
The current ratio of Simpson Manufacturing Company Inc has shown consistent improvement over the past five years, with the ratio increasing from 3.88 in December 31, 2020, to 4.08 in December 31, 2021. This indicates that the company has a strong ability to meet its short-term obligations using its current assets. However, there was a slight decrease in the current ratio to 3.38 in December 31, 2022, followed by a subsequent increase to 3.63 in December 31, 2023, and a decrease to 3.21 in December 31, 2024.
Although the current ratio fluctuated slightly in the last two years, it remains above 3, which is generally considered a healthy indicator of a company's short-term financial health. Overall, Simpson Manufacturing Company Inc appears to have a solid liquidity position, with sufficient current assets to cover its current liabilities.
Peer comparison
Dec 31, 2024