Advanced Drainage Systems Inc (WMS)

Current ratio

Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Total current assets US$ in thousands 1,299,970 1,238,420 1,231,920 1,168,520 1,017,490 1,157,370 1,347,880 1,401,340 871,898 807,019 817,573 795,596 742,978 663,534 700,579 729,364 666,211 525,785 564,220 480,655
Total current liabilities US$ in thousands 439,622 409,125 427,867 419,587 378,802 370,280 439,300 504,758 391,241 364,084 413,839 407,450 318,270 277,559 282,491 258,901 238,213 222,085 241,348 243,983
Current ratio 2.96 3.03 2.88 2.78 2.69 3.13 3.07 2.78 2.23 2.22 1.98 1.95 2.33 2.39 2.48 2.82 2.80 2.37 2.34 1.97

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,299,970K ÷ $439,622K
= 2.96

The current ratio for Advanced Drainage Systems Inc has shown fluctuations over the past few quarters. The ratio stood at 2.96 as of March 31, 2024, indicating that the company had $2.96 in current assets for every $1 in current liabilities. This suggests that the company has a strong ability to cover its short-term obligations with its current assets.

The current ratio trend has been relatively stable and above industry averages, with the ratio consistently above 2 in recent quarters. This indicates that Advanced Drainage Systems Inc has a healthy liquidity position and is generally well-equipped to meet its short-term financial obligations.

However, it is worth noting that the current ratio dipped to 2.23 as of March 31, 2022, which may have raised concerns about the company's short-term liquidity position at that point in time. Management may have implemented strategies to improve this ratio, leading to the subsequent increase in the ratio to 2.96 as of March 31, 2024.

Overall, the current ratio analysis suggests that Advanced Drainage Systems Inc has maintained a relatively strong liquidity position in recent quarters, which is a positive indicator for investors and creditors.