Cactus Inc (WHD)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 774,688 556,178 654,642 518,485 425,142
Total current liabilities US$ in thousands 178,824 175,660 116,649 92,574 48,915
Current ratio 4.33 3.17 5.61 5.60 8.69

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $774,688K ÷ $178,824K
= 4.33

The current ratio of Cactus Inc has displayed a declining trend over the past five years, decreasing from 8.69 in December 31, 2020, to 4.33 in December 31, 2024. This indicates a potential deterioration in the company's short-term liquidity position. A current ratio above 1.0 is generally considered healthy, as it suggests that the company can cover its short-term liabilities with its current assets. However, the downward trajectory of Cactus Inc's current ratio may raise concerns about its ability to meet its short-term obligations efficiently. Further investigation into the company's current asset and current liability management is warranted to understand the reasons behind this declining trend and to assess the company's overall financial health and working capital management.