Whirlpool Corporation (WHR)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,239,000 | 6,207,000 | 6,394,000 | 9,695,000 | 9,129,000 |
| Total current liabilities | US$ in thousands | 7,323,000 | 6,948,000 | 5,931,000 | 8,510,000 | 8,330,000 |
| Current ratio | 0.72 | 0.89 | 1.08 | 1.14 | 1.10 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,239,000K ÷ $7,323,000K
= 0.72
Whirlpool Corporation's current ratio, a measure of its short-term liquidity, has shown some fluctuation over the past five years. In December 2020, the company had a current ratio of 1.10, indicating that it had $1.10 in current assets for every $1 in current liabilities. This ratio improved slightly to 1.14 by December 2021, suggesting a stronger ability to meet its short-term obligations.
However, the trend reversed in the following years. By December 2022, the current ratio decreased to 1.08, and further declined to 0.89 in December 2023. This downward trend indicates a potential strain on the company's short-term financial health, as it may have had difficulty covering its current liabilities with its current assets.
The most concerning change was seen in December 2024, where the current ratio sharply dropped to 0.72. This significant decline suggests that Whirlpool Corporation may be facing challenges in managing its short-term liquidity, potentially due to a decrease in current assets relative to current liabilities.
In conclusion, while the current ratio of Whirlpool Corporation has shown fluctuations over the past five years, the decreasing trend in recent years raises concerns about the company's ability to meet its short-term obligations. It would be critical for Whirlpool to closely monitor and actively manage its current assets and liabilities to improve its liquidity position.
Peer comparison
Dec 31, 2024