Sensata Technologies Holding NV (ST)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	2,027,240	2,102,400	2,775,040	3,076,990	2,979,970
Total current liabilities	US$ in thousands	711,358	823,718	1,178,970	836,259	745,157
Current ratio		2.85	2.55	2.35	3.68	4.00

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,027,240K ÷ $711,358K
= 2.85

The current ratio of Sensata Technologies Holding NV has shown a decreasing trend over the past five years, declining from 4.00 in December 2020 to 2.85 in December 2024. This ratio indicates the company's ability to cover its short-term liabilities with its current assets.

A current ratio above 1.0 is generally considered healthy as it suggests that the company has more current assets than current liabilities. Sensata's current ratio has remained above 1.0 throughout the period, indicating a sufficient level of current assets to meet short-term obligations.

However, the decreasing trend in the current ratio from 2020 to 2024 might raise concerns about the company's liquidity position and ability to cover its short-term obligations in the future. It is important for stakeholders to monitor this trend closely to ensure that the company maintains a healthy liquidity position.