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Badger Paper Mills (Badger Paper Mills) Current Ratio : 0.61 (As of Jun. 2005)


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What is Badger Paper Mills 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. Badger Paper Mills's current ratio for the quarter that ended in Jun. 2005 was 0.61.

Badger Paper Mills has a current ratio of 0.61. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Badger Paper Mills 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 Badger Paper Mills's Current Ratio or its related term are showing as below:

BPMI's Current Ratio is not ranked *
in the Forest Products industry.
Industry Median: 1.7
* Ranked among companies with meaningful Current Ratio only.

Badger Paper Mills Current Ratio Historical Data

The historical data trend for Badger Paper Mills'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.

Badger Paper Mills Current Ratio Chart

Badger Paper Mills Annual Data
Trend Dec95 Dec96 Dec97 Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04
Current Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.60 1.89 1.74 1.70 0.75

Badger Paper Mills Quarterly Data
Sep00 Dec00 Mar01 Jun01 Sep01 Dec01 Mar02 Jun02 Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05
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 1.69 1.46 0.75 0.75 0.61

Competitive Comparison of Badger Paper Mills's Current Ratio

For the Paper & Paper Products subindustry, Badger Paper Mills'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.


Badger Paper Mills's Current Ratio Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Badger Paper Mills's Current Ratio distribution charts can be found below:

* The bar in red indicates where Badger Paper Mills's Current Ratio falls into.



Badger Paper Mills 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.

Badger Paper Mills's Current Ratio for the fiscal year that ended in Dec. 2004 is calculated as

Current Ratio (A: Dec. 2004 )=Total Current Assets (A: Dec. 2004 )/Total Current Liabilities (A: Dec. 2004 )
=13.509/17.912
=0.75

Badger Paper Mills's Current Ratio for the quarter that ended in Jun. 2005 is calculated as

Current Ratio (Q: Jun. 2005 )=Total Current Assets (Q: Jun. 2005 )/Total Current Liabilities (Q: Jun. 2005 )
=12.827/20.908
=0.61

* 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.


Badger Paper Mills  (OTCPK:BPMI) 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.


Badger Paper Mills Current Ratio Related Terms

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Badger Paper Mills (Badger Paper Mills) Business Description

Traded in Other Exchanges
N/A
Address
200 West Front Street, P.O. Box 149, Peshtigo, WI, USA, 54157
Badger Paper Mills Inc manufactures specialty papers and converted materials for the flexible packaging, confectionery, and food service industries. It offers full-service toll printing and in-house capabilities to add a coating to flexible packaging products.
Executives
Mark D Burish director HURLEY, BURISH, MILLIKEN S.C., 301 NORTH BROOM STREET, MADISON WI 53703

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