Advanced Drainage Systems Inc (WMS)
Current ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,299,970 | 1,017,490 | 871,898 | 742,978 | 666,211 |
| Total current liabilities | US$ in thousands | 439,622 | 378,802 | 391,241 | 318,270 | 238,213 |
| Current ratio | 2.96 | 2.69 | 2.23 | 2.33 | 2.80 |
March 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,299,970K ÷ $439,622K
= 2.96
The current ratio of Advanced Drainage Systems Inc has exhibited a fluctuating trend over the past five years. As of March 31, 2024, the current ratio stands at 2.96, indicating that the company has $2.96 in current assets available to cover each dollar of current liabilities.
Compared to the previous year, the current ratio has improved from 2.69 to 2.96, suggesting that the company's liquidity position has strengthened. This increase in the current ratio may be attributed to an increase in current assets relative to current liabilities or a decrease in current liabilities compared to the previous year.
Looking back over the five-year period, the current ratio reached its lowest point in March 31, 2022, at 2.23. This indicates a potential liquidity concern at that time, as the company had only $2.23 in current assets for every dollar of current liabilities. However, the current ratio has since shown a positive trend, rebounding to 2.96 as of March 31, 2024.
Overall, the current ratio of Advanced Drainage Systems Inc has demonstrated variability over the years, but the most recent increase suggests an improvement in the company's ability to cover its short-term obligations with its current assets.