Stanley Black & Decker Inc (SWK)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 290,500 | 7,017,300 | 7,974,700 | 8,526,400 | 6,036,000 |
| Total current liabilities | US$ in thousands | 2,680,100 | 5,883,200 | 6,560,100 | 8,760,500 | 4,558,300 |
| Current ratio | 0.11 | 1.19 | 1.22 | 0.97 | 1.32 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $290,500K ÷ $2,680,100K
= 0.11
The current ratio of Stanley Black & Decker Inc has shown fluctuations over the years based on the provided data. The current ratio as of December 31, 2020, was 1.32, indicating that the company had $1.32 in current assets for every $1 in current liabilities. However, by December 31, 2021, the current ratio decreased to 0.97, suggesting potential liquidity challenges as the company may have had fewer current assets relative to its current liabilities.
Subsequently, the current ratio improved to 1.22 by December 31, 2022, and slightly dropped to 1.19 by December 31, 2023. These ratios indicate a healthier position compared to the previous year but still need to be monitored for any signs of strain on the company's liquidity.
The data for December 31, 2024, shows a significant decline in the current ratio to 0.11, which raises concerns about the company's ability to meet its short-term obligations with its current assets. This sharp decrease may warrant a closer examination of the company's liquidity management and financial health.
In conclusion, the trend in Stanley Black & Decker's current ratio highlights variations in its liquidity position over the years, with the most recent data indicating a concerning drop. It would be crucial for stakeholders to analyze the factors contributing to these changes and assess the company's ability to fulfill its short-term obligations.
Peer comparison
Dec 31, 2024