Varex Imaging Corp (VREX)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 658,300 | 609,900 | 554,200 | 522,000 | 438,400 |
| Total current liabilities | US$ in thousands | 162,800 | 173,100 | 166,600 | 160,600 | 175,100 |
| Current ratio | 4.04 | 3.52 | 3.33 | 3.25 | 2.50 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $658,300K ÷ $162,800K
= 4.04
The current ratio of Varex Imaging Corp has been consistently increasing over the past five years, from 2.50 in 2019 to 4.04 in 2023. This indicates that the company's ability to meet its short-term obligations with its current assets has been improving. A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting strong liquidity and financial health. Varex Imaging Corp's current ratio above 3 in recent years reflects a robust financial position and indicates that the company has a comfortable margin of safety to cover its short-term liabilities. Overall, the trend in the current ratio suggests that Varex Imaging Corp has been managing its current assets and liabilities effectively, which is a positive indicator for investors and creditors.
Peer comparison
Sep 30, 2023