Williams Companies Inc (WMB)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,661,000 | 4,513,000 | 3,797,000 | 4,549,000 | 1,429,000 |
| Total current liabilities | US$ in thousands | 5,312,000 | 5,830,000 | 4,890,000 | 4,972,000 | 2,319,000 |
| Current ratio | 0.50 | 0.77 | 0.78 | 0.91 | 0.62 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,661,000K ÷ $5,312,000K
= 0.50
The current ratio of Williams Companies Inc has shown some fluctuation over the past five years. As of December 31, 2020, the current ratio was 0.62, indicating that the company's current assets were only 62% of its current liabilities. Over the following years, the ratio improved, reaching 0.91 as of December 31, 2021, suggesting a better ability to meet short-term obligations.
However, in the subsequent years, the current ratio decreased slightly to 0.78 as of December 31, 2022, and further to 0.77 as of December 31, 2023. This downward trend may raise concerns about the company's liquidity and its ability to cover immediate liabilities with current assets.
By December 31, 2024, the current ratio dropped significantly to 0.50, indicating a potential strain on the company's short-term liquidity position. A current ratio below 1 suggests that Williams Companies Inc may have difficulties meeting its current obligations using its existing current assets.
Overall, the trend in Williams Companies Inc's current ratio highlights the importance of monitoring liquidity levels to ensure the company can effectively manage its short-term financial obligations. It may be advisable for stakeholders to assess the underlying reasons for the declining current ratio and its potential impact on the company's financial health.
Peer comparison
Dec 31, 2024