Woodward Inc (WWD)
Current ratio
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,546,160 | 1,469,450 | 1,490,480 | 1,470,690 | 1,359,500 | 1,311,970 | 1,253,720 | 1,331,390 | 1,446,730 | 1,464,720 | 1,443,530 | 1,368,160 | 1,246,550 | 1,210,860 | 1,236,950 | 1,339,810 | 1,329,200 | 1,271,230 | 1,298,110 | 1,244,090 |
| Total current liabilities | US$ in thousands | 582,814 | 617,196 | 586,659 | 666,944 | 633,161 | 539,113 | 424,474 | 369,046 | 329,508 | 366,257 | 340,577 | 341,408 | 328,110 | 392,332 | 535,628 | 594,834 | 792,045 | 707,436 | 642,672 | 642,612 |
| Current ratio | 2.65 | 2.38 | 2.54 | 2.21 | 2.15 | 2.43 | 2.95 | 3.61 | 4.39 | 4.00 | 4.24 | 4.01 | 3.80 | 3.09 | 2.31 | 2.25 | 1.68 | 1.80 | 2.02 | 1.94 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,546,160K ÷ $582,814K
= 2.65
Over the past eight quarters, Woodward Inc's current ratio has exhibited some variability. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio generally indicates better liquidity and financial flexibility.
In the most recent quarter (Q1 2024), Woodward Inc's current ratio stands at 2.65, demonstrating a healthy level of liquidity. This indicates that the company has $2.65 in current assets for every $1 in current liabilities, suggesting a strong ability to meet its short-term obligations.
Comparing this to the previous quarters, the current ratio has fluctuated between 2.15 and 3.61. The sharp decrease in Q2 2022 to 2.15 may have suggested some liquidity strain, but the ratio has since improved and stabilized, with Q3 2022 showing a ratio of 2.95 and Q4 2023 at 2.38.
Overall, Woodward Inc's current ratio has shown some variability but has generally remained above 2.0, indicating a solid ability to meet short-term obligations. Investors and creditors typically look for consistent and healthy current ratios to assess a company's short-term financial health, and Woodward Inc's ratios over the past eight quarters suggest a generally positive liquidity position.