Tidewater Inc (TDW)

Current ratio

		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	Sep 30, 2019
Total current assets	US$ in thousands	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	644,941
Total current liabilities	US$ in thousands	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	159,853
Current ratio		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	4.03

June 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $646,945K ÷ $340,224K
= 1.90

The current ratio of Tidewater Inc has fluctuated over the past several quarters, ranging from 1.17 to 4.03. Generally, a current ratio of 2 or higher is considered healthy, indicating that the company can easily meet its short-term obligations.

Tidewater's current ratio has shown a downward trend in the most recent quarters, with the ratio decreasing from 1.99 in Jun 30, 2023, to 1.90 in Jun 30, 2024. This suggests that the company may have more difficulty covering its short-term liabilities with its current assets in the most recent period.

The significant decrease in the current ratio from 2.46 in Mar 31, 2022, to 1.17 in Dec 31, 2021, is a cause for concern as it indicates a substantial decrease in the company's ability to pay off its short-term debt. However, the ratio improved significantly in the following quarters, reaching 2.46 by Mar 31, 2022.

Overall, while the current ratio has shown variability, Tidewater Inc has maintained a current ratio above 1.5, suggesting that it has generally had sufficient current assets to cover its current liabilities. However, monitoring the trend and ensuring that the ratio stays above 2 will be important for the company's liquidity and financial health moving forward.