Smurfit WestRock plc (SW)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Jun 30, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 10,055,000 | 10,545,000 | 25 | 0 | 4,081,000 | — | 4,210,000 | 4,509,000 | — | — |
| Total current liabilities | US$ in thousands | 7,333,000 | 7,126,000 | 11 | — | 2,694,000 | — | 2,678,000 | 3,027,000 | — | — |
| Current ratio | 1.37 | 1.48 | 2.27 | — | 1.51 | — | 1.57 | 1.49 | — | — |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $10,055,000K ÷ $7,333,000K
= 1.37
The current ratio of Smurfit WestRock plc has shown fluctuations over the analyzed periods, indicating varying short-term liquidity positions. As of December 31, 2022, the current ratio was 1.49, implying the company had $1.49 in current assets to cover each dollar of current liabilities. This ratio increased to 1.57 by June 30, 2023, suggesting improved liquidity in the short term.
However, the current ratio decreased to 1.51 by December 31, 2023, before remaining unchanged at 1.51 during the following period, March 31, 2024. Notably, the current ratio significantly improved to 2.27 by June 30, 2024, indicating a strengthened short-term liquidity position.
Subsequently, by September 30, 2024, the current ratio decreased to 1.48, followed by a further decline to 1.37 by December 31, 2024. These lower ratios may raise concerns about the company's ability to meet its short-term obligations using its current assets.
Overall, fluctuations in the current ratio of Smurfit WestRock plc suggest a mixed short-term liquidity position, with periods of improvement and some declines in liquidity over the analyzed timeframe. Management should closely monitor these ratios to ensure adequate liquidity for operational needs and financial stability.
Peer comparison
Dec 31, 2024