US Foods Holding Corp (USFD)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,031,000 | 3,820,000 | 3,594,000 | 3,465,000 | 3,262,000 |
| Total current liabilities | US$ in thousands | 3,112,000 | 2,796,000 | 2,550,000 | 1,982,000 | 2,362,000 |
| Current ratio | 1.30 | 1.37 | 1.41 | 1.75 | 1.38 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,031,000K ÷ $3,112,000K
= 1.30
The current ratio measures a company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position.
US Foods Holding Corp's current ratio has fluctuated over the past five years. In 2023, the current ratio decreased to 1.30 from 1.37 in 2022, indicating a slight decline in liquidity. Compared to 2021, where the ratio was 1.41, this downward trend suggests a decrease in the company's ability to cover its short-term liabilities with current assets.
However, it is important to note that the current ratio of 1.30 is still above 1, indicating that US Foods Holding Corp has sufficient current assets to meet its short-term obligations. In comparison to 2020, when the current ratio was 1.75, the current liquidity position appears weaker in 2023. Further analysis is needed to understand the factors contributing to this change in liquidity over the years.
Peer comparison
Dec 31, 2023