Williams Companies Inc (WMB)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,513,000 | 3,797,000 | 4,549,000 | 1,429,000 | 1,580,000 |
| Total current liabilities | US$ in thousands | 5,830,000 | 4,890,000 | 4,972,000 | 2,319,000 | 3,968,000 |
| Current ratio | 0.77 | 0.78 | 0.91 | 0.62 | 0.40 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,513,000K ÷ $5,830,000K
= 0.77
The current ratio is a measure of a company's ability to cover its short-term liabilities with its short-term assets. Williams Cos Inc's current ratio has fluctuated over the past five years, ranging from 0.40 in 2019 to 0.91 in 2021.
In 2023, the current ratio decreased to 0.77 from 0.78 in 2022, indicating a slight deterioration in the company's short-term liquidity position. However, it is still above 1, which is the generally accepted benchmark for a healthy current ratio.
The downward trend in the current ratio from 0.91 in 2021 to 0.77 in 2023 raises concerns about the company's ability to meet its short-term obligations using its current assets. It is important for Williams Cos Inc to closely monitor its liquidity position and take appropriate measures to improve its current ratio to ensure financial stability and meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023