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. Menon Pistons's current ratio for the quarter that ended in Dec. 2023 was 0.00.
Menon Pistons has a current ratio of 0.00. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Menon Pistons has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Menon Pistons's Current Ratio or its related term are showing as below:
BOM:531727'
s Current Ratio Range Over the Past 10 Years
Min: 1.28 Med: 2.11 Max: 3.48
Current: 1.94
During the past 13 years, Menon Pistons's highest Current Ratio was 3.48. The lowest was 1.28. And the median was 2.11.
BOM:531727's Current Ratio is ranked better than 65.9% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 1.51
vs BOM:531727: 1.94
Menon Pistons Current Ratio Historical Data
The historical data trend for Menon Pistons'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.
Competitive Comparison of Menon Pistons's Current Ratio
For the Auto Parts subindustry, Menon Pistons'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.
Menon Pistons's Current Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Menon Pistons's Current Ratio distribution charts can be found below:
* The bar in red indicates where Menon Pistons's Current Ratio falls into.
Menon Pistons 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.
Menon Pistons's Current Ratio for the fiscal year that ended in Mar. 2023 is calculated as
* 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.
Menon Pistons (BOM:531727) 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.
Menon Pistons Current Ratio Related Terms
Thank you for viewing the detailed overview of Menon Pistons's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Menon Pistons Ltd engages in the manufacturing and trade of automotive parts and components. It offers pistons, gudgeon pins; gallery cut section, and rings. The company's products include cooled gallery section, articulated and Kirloskar Copeland pistons, and others for commercial vehicles, tractors, passenger cars, and heavy duty stationery engines. It has only one segment of activity namely Automotive Component.
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