Woodward Inc (WWD)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,743,610 | 1,469,450 | 1,311,970 | 1,464,720 | 1,210,860 |
| Total current liabilities | US$ in thousands | 923,510 | 617,196 | 539,113 | 366,257 | 392,332 |
| Current ratio | 1.89 | 2.38 | 2.43 | 4.00 | 3.09 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,743,610K ÷ $923,510K
= 1.89
Woodward Inc's current ratio has exhibited a decreasing trend over the past five years. The current ratio was 1.89 as of September 30, 2024, compared to 2.38 in 2023, 2.43 in 2022, 4.00 in 2021, and 3.09 in 2020. This suggests that the company may have experienced a decrease in its ability to meet its short-term obligations with its current assets over the years.
A current ratio below 1 indicates that the company may have difficulties meeting its short-term liabilities, while a ratio above 1 signifies that the company has more current assets than current liabilities. Although Woodward Inc's current ratio has decreased, it still indicates that the company has more current assets than current liabilities.
It is important to further assess the reasons behind the declining trend in the current ratio to understand whether it is a result of changes in the company's current assets, current liabilities, or a combination of both. This analysis can provide insights into Woodward Inc's liquidity position and its ability to manage short-term financial obligations effectively.