Upbound Group Inc. (UPBD)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 100,103 | 151,129 | 114,738 | 164,888 | 75,372 |
| Total current liabilities | US$ in thousands | 613,804 | 445,168 | 369,899 | 388,116 | 343,050 |
| Current ratio | 0.16 | 0.34 | 0.31 | 0.42 | 0.22 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $100,103K ÷ $613,804K
= 0.16
The current ratio of Upbound Group Inc. has exhibited fluctuating trends over the past five years.
As of December 31, 2023, the current ratio stands at 0.16, indicating that the company's current assets are relatively low compared to its current liabilities. This may raise concerns about Upbound Group Inc.'s short-term liquidity position and its ability to meet its immediate financial obligations.
In comparison, the current ratio was higher in the preceding two years, with values of 0.34 in 2022 and 0.31 in 2021. These higher ratios suggested that the company had a better ability to cover its short-term liabilities with its current assets during those periods.
The current ratio was at its peak in 2020, at 0.42, indicating a stronger liquidity position at that time. However, the ratio significantly dropped to 0.22 in 2019, signaling a potential liquidity strain in that year.
Overall, the downward trend in the current ratio from 2020 to 2023 raises concerns about Upbound Group Inc.'s short-term liquidity management. Further analysis of the company's current assets and liabilities composition is recommended to understand the factors contributing to the declining current ratio and to assess the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023