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Novo Resources (ASX:NVO) Current Ratio : 1.93 (As of Jun. 2024)


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What is Novo Resources Current Ratio?

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Novo Resources's current ratio for the quarter that ended in Jun. 2024 was 1.93.

Novo Resources has a current ratio of 1.93. It generally indicates good short-term financial strength.

The historical rank and industry rank for Novo Resources's Current Ratio or its related term are showing as below:

ASX:NVO' s Current Ratio Range Over the Past 10 Years
Min: 1.09   Med: 3.24   Max: 102.65
Current: 1.93

During the past 13 years, Novo Resources's highest Current Ratio was 102.65. The lowest was 1.09. And the median was 3.24.

ASX:NVO's Current Ratio is ranked worse than
50.36% of 2663 companies
in the Metals & Mining industry
Industry Median: 1.95 vs ASX:NVO: 1.93

Novo Resources Current Ratio Historical Data

The historical data trend for Novo Resources's Current Ratio can be seen below:

* 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.

* Premium members only.

Novo Resources Current Ratio Chart

Novo Resources Annual Data
Trend Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Dec21 Dec22 Dec23
Current Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.66 3.70 1.09 2.48 2.66

Novo Resources Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Current Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.26 3.32 2.66 2.72 1.93

Competitive Comparison of Novo Resources's Current Ratio

For the Gold subindustry, Novo Resources'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.


Novo Resources's Current Ratio Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Novo Resources's Current Ratio distribution charts can be found below:

* The bar in red indicates where Novo Resources's Current Ratio falls into.



Novo Resources 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.

Novo Resources's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Current Ratio (A: Dec. 2023 )=Total Current Assets (A: Dec. 2023 )/Total Current Liabilities (A: Dec. 2023 )
=26.573/9.996
=2.66

Novo Resources's Current Ratio for the quarter that ended in Jun. 2024 is calculated as

Current Ratio (Q: Jun. 2024 )=Total Current Assets (Q: Jun. 2024 )/Total Current Liabilities (Q: Jun. 2024 )
=14.427/7.46
=1.93

* 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.


Novo Resources  (ASX:NVO) 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.


Novo Resources Current Ratio Related Terms

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Novo Resources Business Description

Traded in Other Exchanges
Address
1199 West Hastings Street, Vancouver, BC, CAN, V6E 3T5
Novo Resources Corp is a company engaged in the business of evaluating, acquiring, and exploring natural resource properties with a focus on gold. The organization has business interests in properties located in Australia, Canada, and the USA. Its projects include Beatons Creek Property, Millennium Property, Blue Spec; Paleo-Placer; Comet Well, and others. It has two segments Mining operations and exploration operations.