Wabash National Corporation (WNC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 681,353 | 592,619 | 529,705 | 545,764 | 541,389 |
| Total current liabilities | US$ in thousands | 352,209 | 347,468 | 289,325 | 235,753 | 259,378 |
| Current ratio | 1.93 | 1.71 | 1.83 | 2.31 | 2.09 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $681,353K ÷ $352,209K
= 1.93
The current ratio of Wabash National Corp. has fluctuated over the past five years, ranging from a low of 1.71 in 2022 to a high of 2.31 in 2020. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio greater than 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign of financial health.
In 2023, the current ratio improved to 1.93 from the previous year's 1.71, which suggests that the company may have strengthened its liquidity position by either increasing its current assets, reducing its current liabilities, or a combination of both. It is important to note that while a higher current ratio is generally favorable, an extremely high current ratio may indicate inefficient use of resources or an excessive amount of current assets relative to current liabilities.
Overall, Wabash National Corp.'s current ratio indicates a healthy liquidity position, as it has consistently maintained a current ratio above 1 over the past five years, ensuring that the company can meet its short-term financial obligations.