Woodward Inc (WWD)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,469,450 | 1,311,970 | 1,464,720 | 1,210,860 | 1,271,230 |
| Total current liabilities | US$ in thousands | 617,196 | 539,113 | 366,257 | 392,332 | 707,436 |
| Current ratio | 2.38 | 2.43 | 4.00 | 3.09 | 1.80 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,469,450K ÷ $617,196K
= 2.38
The current ratio for Woodward Inc has exhibited some fluctuations over the past five years. In 2023, the current ratio stood at 2.38, a slight decrease from the previous year's 2.43. This indicates that the company has $2.38 of current assets for every $1 of current liabilities. While the current ratio has decreased, it still reflects a relatively healthy liquidity position for the company. Comparing this to the significantly higher ratio of 4.00 in 2021, it is evident that the company had a strong ability to cover its short-term obligations that year. In 2020 and 2019, the current ratio was 3.09 and 1.80, respectively, suggesting a less favorable liquidity position compared to the recent years. Overall, the current ratio has demonstrated variability, and further analysis of the components of current assets and liabilities may provide deeper insights into the company's liquidity management over time.