WESCO International Inc (WCC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 8,391,600 | 8,330,500 | 6,350,110 | 5,506,980 | 2,540,410 |
| Total current liabilities | US$ in thousands | 3,388,400 | 3,817,300 | 3,049,810 | 2,987,000 | 1,084,060 |
| Current ratio | 2.48 | 2.18 | 2.08 | 1.84 | 2.34 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $8,391,600K ÷ $3,388,400K
= 2.48
The current ratio of Wesco International, Inc. has shown a generally positive trend over the past five years. The ratio has increased from 2.34 in 2019 to 2.48 in 2023, indicating an improvement in the company's short-term liquidity position.
A current ratio above 1 suggests that the company has more current assets than current liabilities, which is generally considered favorable. Wesco International, Inc. has consistently maintained a current ratio above 2 since 2020, indicating a strong ability to meet its short-term obligations with its current assets.
The significant increase in the current ratio from 2020 to 2023 suggests that Wesco International, Inc. has been effectively managing its short-term liquidity and has potentially strengthened its financial position over the years. This could be attributed to efficient working capital management or improved financial performance.
Overall, the increasing trend in Wesco International, Inc.'s current ratio indicates a positive liquidity position and the company's ability to cover its short-term liabilities comfortably.
Peer comparison
Dec 31, 2023