Tidewater Inc (TDW)

Current ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	625,971	646,945	615,509	591,135	575,366	410,492	396,436	377,908	346,713	329,783	309,191	342,672	350,093	355,163	363,742	388,649	440,815	473,767	518,193	537,296
Total current liabilities	US$ in thousands	273,573	340,224	339,137	328,731	332,484	206,443	215,343	194,787	184,403	187,621	125,499	157,942	299,880	162,660	172,648	183,179	163,294	162,159	189,635	185,677
Current ratio		2.29	1.90	1.81	1.80	1.73	1.99	1.84	1.94	1.88	1.76	2.46	2.17	1.17	2.18	2.11	2.12	2.70	2.92	2.73	2.89

September 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $625,971K ÷ $273,573K
= 2.29

The current ratio of Tidewater Inc has fluctuated over the past few years, ranging from 1.17 to 2.92. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A higher current ratio indicates a stronger ability to meet short-term liabilities.

Looking at the trend, the current ratio has generally been above 1.5, which is considered healthy as it indicates the company has more current assets than current liabilities. It peaked at 2.92 in September 2020, which suggests a strong liquidity position at that time. However, there was a significant drop in the current ratio in March 2022 to 1.17, indicating a potential liquidity strain or inefficient working capital management.

Since then, the current ratio has shown some recovery and stability, with the ratio consistently above 1.80 over the past few quarters. This trend indicates that Tidewater Inc has been able to maintain a satisfactory level of liquidity to meet its short-term obligations.

Overall, while the current ratio has shown fluctuations, the recent trend suggests that Tidewater Inc has improved its liquidity position and is better able to meet its short-term liabilities. Investors and stakeholders should continue to monitor the current ratio to assess the company's liquidity health and short-term financial stability.