Woodward Inc (WWD)
Current ratio
| Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,743,610 | 1,788,360 | 1,811,970 | 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 |
| Total current liabilities | US$ in thousands | 923,510 | 913,092 | 691,855 | 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 |
| Current ratio | 1.89 | 1.96 | 2.62 | 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 |
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 shown fluctuations over the past 2 years. As of September 30, 2024, the current ratio stands at 1.89, indicating that the company has $1.89 in current assets for every $1 of current liabilities. The ratio has been above 1 consistently, signaling that the company has had sufficient current assets to cover its short-term obligations.
There was a notable decline in the current ratio in the first quarter of 2022, where it dropped to 1.68, raising concerns about the company's liquidity position. However, since then, the current ratio has been on an upward trend, reaching a peak of 4.39 in December 2021, and has generally remained above 2, which is considered healthy.
The current ratio above 2 suggests that Woodward Inc can comfortably meet its short-term obligations, including payments to suppliers and creditors. The decreasing trend from 2021 to 2022 and subsequent recovery in 2023 and 2024 may indicate changes in the company's liquidity management or business operations.
Overall, while the current ratio fluctuates, Woodward Inc's current assets have generally been adequate to cover its current liabilities. It is essential for the company to continue monitoring its liquidity position to ensure it can meet its short-term obligations effectively.