Stanley Black & Decker Inc (SWK)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,017,300 | 7,974,700 | 8,526,400 | 6,036,000 | 4,456,600 |
| Total current liabilities | US$ in thousands | 5,883,200 | 6,569,200 | 8,767,400 | 4,558,300 | 4,405,700 |
| Current ratio | 1.19 | 1.21 | 0.97 | 1.32 | 1.01 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,017,300K ÷ $5,883,200K
= 1.19
The current ratio measures a company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that a company has more current assets than current liabilities, which implies good liquidity.
Looking at the current ratio trend for Stanley Black & Decker Inc over the past five years, we observe fluctuations. In 2023, the current ratio stands at 1.19, a slight decrease from the previous year. This suggests that the company may have a slightly lower ability to cover its short-term obligations with its current assets compared to 2022, but it still remains above the 1 threshold.
In 2021, the current ratio was notably lower at 0.97, indicating potential liquidity concerns as the company may have had difficulty meeting its short-term obligations with its current assets. The significant increase in 2022 to 1.21 shows an improvement in liquidity position.
The current ratio was highest in 2020 at 1.32, indicating a strong ability to cover its short-term debts with its current assets. On the other hand, in 2019, the ratio was at 1.01, showing a satisfactory liquidity position.
Overall, the current ratio of Stanley Black & Decker Inc has shown fluctuations over the past five years but has generally stayed above 1, indicating that the company has maintained a reasonably healthy liquidity position despite some variations. Investors and stakeholders should continue to monitor the company's current ratio to ensure its ability to meet short-term obligations.
Peer comparison
Dec 31, 2023