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. Measurement Specialties's current ratio for the quarter that ended in Jun. 2014 was 2.56.
Measurement Specialties has a current ratio of 2.56. It generally indicates good short-term financial strength.
The historical rank and industry rank for Measurement Specialties's Current Ratio or its related term are showing as below:
FRA:MEG'
s Current Ratio Range Over the Past 10 Years
Min: 0.74 Med: 1.96 Max: 3.26
Current: 2.56
During the past 13 years, Measurement Specialties's highest Current Ratio was 3.26. The lowest was 0.74. And the median was 1.96.
FRA:MEG's Current Ratio is not ranked
in the Hardware industry.
Industry Median: 2.02
vs FRA:MEG: 2.56
Measurement Specialties 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.
Competitive Comparison of Measurement Specialties's Current Ratio
For the Scientific & Technical Instruments subindustry, Measurement Specialties'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.
Measurement Specialties's Current Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Measurement Specialties's Current Ratio distribution charts can be found below:
* The bar in red indicates where Measurement Specialties's Current Ratio falls into.
Measurement Specialties 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.
Measurement Specialties's Current Ratio for the fiscal year that ended in Mar. 2014 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.
Measurement Specialties (FRA:MEG) 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.
Measurement Specialties Current Ratio Related Terms
Thank you for viewing the detailed overview of Measurement Specialties's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Measurement Specialties (FRA:MEG) Business Description
Measurement Specialties, Inc. is a New Jersey corporation organized in 1981. The Company is engaged in the design, development and manufacture of sensors and sensor-based systems for original equipment manufacturers (OEM) and end users, based on a broad portfolio of proprietary technology and typically characterized by the MEAS brand name. The Company is a multi-national corporation with fifteen main manufacturing facilities strategically located in the United States, China and Europe, enabling the Company to produce and market an array of sensors that use advanced technologies to measure precise ranges of physical characteristics. These sensors are used for engine and vehicle, medical, general industrial, consumer and home appliance, military/aerospace, and test and measurement applications. The Company's products include sensors for measuring pressure, linear/rotary position, force, torque, piezoelectric polymer film sensors, custom microstructures, load cells, vibrations and acceleration, optical absorption, humidity, gas concentration, gas flow rate, temperature, fluid properties and fluid level. The Company's advanced technologies include piezoresistive silicon, polymer and ceramic piezoelectric materials, application specific integrated circuits, micro-electromechanical systems ('MEMS'), foil strain gauges, electromagnetic force balance systems, fluid capacitive devices, linear and rotational variable differential transformers, anisotropic magneto-resistive devices, electromagnetic displacement sensors, hygroscopic capacitive structures, ultrasonic measurement systems, optical measurement systems, negative thermal coefficient ('NTC') ceramic sensors, 3-6 DOF (degree of freedom) force/torque structures, complex mechanical resonators, magnetic reed switches, high frequency multipoint scanning algorithms, and high precision submersible hydrostatic level detection. The Company's competitors include small independent companies and divisions of large corporations such as Danaher, General Electric, Schneider-Electric and Honeywell.
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