American Science & Engineering has a current ratio of 4.27. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for American Science & Engineering's Current Ratio or its related term are showing as below:
ASEI's Current Ratio is not ranked *
in the Hardware industry.
Industry Median: 2.04 * Ranked among companies with meaningful Current Ratio only.
American Science & Engineering Current Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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American Science & Engineering Current Ratio Chart
Competitive Comparison of American Science & Engineering's Current Ratio
For the Scientific & Technical Instruments subindustry, American Science & Engineering's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Science & Engineering's Current Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, American Science & Engineering's Current Ratio distribution charts can be found below:
* The bar in red indicates where American Science & Engineering's Current Ratio falls into.
American Science & Engineering Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
American Science & Engineering (NAS:ASEI) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
American Science & Engineering Current Ratio Related Terms
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American Science & Engineering (American Science & Engineering) Business Description
American Science & Engineering Inc is a Massachusetts corporation formed in 1958. The Company develops, manufactures, markets, and sells X-ray inspection and other detection products for homeland security, force protection, public safety, and other critical defense and security applications. It provides maintenance, warranty, engineering, training and operator services related to these products. The Company manufactures X-ray inspection products that can be used to inspect parcels, baggage, vehicles, pallets, cargo containers, and people. The Company sells its products throughout the world to a variety of customers, including authorities responsible for port and border security; customs agencies; military organizations; critical infrastructure and high threat commercial and government facilities; aviation security agencies; and law enforcement agencies. Its products are used by these customers to help combat terrorism, trade fraud, drug trafficking, weapons smuggling, and illegal immigration. Its products are also used for military force protection and general facility security. The Company's X-ray imaging products utilize several technologies including traditional transmission X-ray imaging, dual-energy transmission X-ray imaging, dual-energy/high-energy transmission X-ray imaging, Forwardscatter X-ray imaging and its proprietary Z Backscatter X-ray imaging. The Company's products and services include Cargo Inspection Systems, Mobile Cargo Inspection Systems, Parcel and Personnel Screening Inspection Systems, Custom Products, and Service and Support. The Company's customer base consists of government and commercial clients from both the United States and abroad. Domestically, the Company's primary client base is comprised of agencies of the U.S. government.
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