Varex Imaging Corp (VREX)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 649,900 | 658,300 | 609,900 | 554,200 | 522,000 |
| Total current liabilities | US$ in thousands | 195,900 | 162,800 | 173,100 | 166,600 | 160,600 |
| Current ratio | 3.32 | 4.04 | 3.52 | 3.33 | 3.25 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $649,900K ÷ $195,900K
= 3.32
The current ratio of Varex Imaging Corp has shown a fluctuating trend over the past five years. The ratio was 3.25 in 2020, slightly increased to 3.33 in 2021, further increased to 3.52 in 2022, and then decreased to 4.04 in 2023. In the most recent period ending on September 30, 2024, the current ratio decreased to 3.32.
A current ratio above 1 indicates that the company has more current assets than current liabilities, implying good short-term liquidity. Varex Imaging Corp has consistently demonstrated a current ratio above 3 in the past years, indicating a strong ability to cover its short-term obligations.
While the recent decrease in the current ratio from the previous year may suggest a slight deterioration in short-term liquidity, it is important to consider the specific industry and business context when interpreting this ratio. Overall, Varex Imaging Corp has maintained a healthy current ratio, reflecting its ability to meet its short-term financial obligations easily.
Peer comparison
Sep 30, 2024