WD-40 Company (WDFC)
Current ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 255,441 | 248,525 | 249,640 | 241,219 | 185,154 |
| Total current liabilities | US$ in thousands | 103,500 | 88,842 | 110,820 | 85,936 | 60,116 |
| Current ratio | 2.47 | 2.80 | 2.25 | 2.81 | 3.08 |
August 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $255,441K ÷ $103,500K
= 2.47
The current ratio for WD-40 Company has shown fluctuations over the past five years, ranging from 2.25 to 3.08. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company can meet its short-term obligations.
In 2024, WD-40 Company's current ratio stands at 2.47, which indicates a slight decrease compared to the prior year. Although the current ratio is above 1, suggesting the company's ability to cover its short-term liabilities, a lower current ratio may signal potential liquidity challenges or a shift in the composition of current assets and liabilities.
It is important to note that the current ratio should be analyzed in conjunction with other financial indicators to gain a comprehensive understanding of the company's financial health and liquidity position. Further investigation into the components of current assets and liabilities would provide more insights into WD-40 Company's short-term financial management.
Peer comparison
Aug 31, 2024