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. Viasystems Group's current ratio for the quarter that ended in Mar. 2015 was 1.69.
Viasystems Group has a current ratio of 1.69. It generally indicates good short-term financial strength.
The historical rank and industry rank for Viasystems Group's Current Ratio or its related term are showing as below:
FRA:VY7'
s Current Ratio Range Over the Past 10 Years
Min: 0.28 Med: 1.52 Max: 1.76
Current: 1.69
During the past 11 years, Viasystems Group's highest Current Ratio was 1.76. The lowest was 0.28. And the median was 1.52.
FRA:VY7's Current Ratio is not ranked
in the Hardware industry.
Industry Median: 2.04
vs FRA:VY7: 1.69
Viasystems Group Current Ratio Historical Data
The historical data trend for Viasystems Group'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 Viasystems Group's Current Ratio
For the Electronic Components subindustry, Viasystems Group'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.
Viasystems Group's Current Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Viasystems Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Viasystems Group's Current Ratio falls into.
Viasystems Group 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.
Viasystems Group's Current Ratio for the fiscal year that ended in Dec. 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.
Viasystems Group (FRA:VY7) 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.
Viasystems Group Current Ratio Related Terms
Thank you for viewing the detailed overview of Viasystems Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Viasystems Group Inc is a Delaware Corporation formed in August 28, 1996. The Company is a provider of complex multi-layer printed circuit boards (PCBs) and electromechanical solutions (E-M Solutions). Its segment includes Printed Circuit Boards, which includes PCB products; and Assembly, which includes E-M Solutions products and services. Printed circuit boards serve as the electronic backbone of all electronic equipment, and its E-M Solutions products and services integrate PCBs and other components into finished or semi-finished electronic equipment, which include custom and standard metal enclosures, metal cabinets, metal racks and sub-racks, backplanes, cable assemblies and busbars. Printed Circuit Boards serve all electronic equipment, providing the circuitry and mounting surfaces necessary to interconnect discrete electronic components, such as integrated circuits, capacitors and resistors. Electro-Mechanical Solutions include a products and services, mainly including assembly of backplanes, custom and standard metal enclosures, racks and sub-racks, cabinets, systems integration and assembly, final product testing and fulfillment. The Company's primary direct competitors are Compeq Manufacturing Co. Ltd., Flextronics Corporation, Gold Circuit Electronics Ltd., Kingboard Chemical Holdings Ltd., Nanya Technology Corp., Sanmina-SCI Corp. and TTM Technologies, Inc. It markets its products through its own sales and marketing organization and through relationships with independent sales agents around the world. Its sells its products to various end markets including Automotive, Industrial & instrumentation, Telecommunications, Computer and datacommunications, and Military and aerospace.
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