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. Williams Partners LP's current ratio for the quarter that ended in Sep. 2014 was 0.49.
Williams Partners LP has a current ratio of 0.49. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Williams Partners LP 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 Williams Partners LP's Current Ratio or its related term are showing as below:
FRA:WP8'
s Current Ratio Range Over the Past 10 Years
Min: 0.31 Med: 0.96 Max: 4.23
Current: 0.49
During the past 12 years, Williams Partners LP's highest Current Ratio was 4.23. The lowest was 0.31. And the median was 0.96.
FRA:WP8's Current Ratio is not ranked
in the Oil & Gas industry.
Industry Median: 1.325
vs FRA:WP8: 0.49
Williams Partners LP Current Ratio Historical Data
The historical data trend for Williams Partners LP'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 Williams Partners LP's Current Ratio
For the Oil & Gas Midstream subindustry, Williams Partners LP'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.
Williams Partners LP's Current Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Williams Partners LP's Current Ratio distribution charts can be found below:
* The bar in red indicates where Williams Partners LP's Current Ratio falls into.
Williams Partners LP 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.
Williams Partners LP's Current Ratio for the fiscal year that ended in Dec. 2013 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.
Williams Partners LP (FRA:WP8) 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.
Williams Partners LP Current Ratio Related Terms
Thank you for viewing the detailed overview of Williams Partners LP's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Williams Partners LP (FRA:WP8) Business Description
Williams Partners LP is a publicly traded Delaware limited partnership formed by The Williams Companies, Inc. (Williams) in 2005. It is an energy infrastructure company. The Company is engaged in natural gas transportation; gathering, treating, and processing; storage; NGL fractionation; olefins production; and oil transportation. The operations of its businesses are located in North America. The Company's operations are divided into four business segments: Northeast G&P — this segment includes its natural gas gathering and processing and NGL fractionation businesses in the Marcellus and Utica shale regions, Atlantic-Gulf — this segment includes its interstate natural gas pipeline, Transco, and significant natural gas gathering and processing and crude oil production handling and transportation in the Gulf Coast region, West — this segment includes its natural gas gathering, processing and treating operations in New Mexico, Colorado, and Wyoming and its interstate natural gas pipeline, Northwest Pipeline, and NGL & Petchem Services — this segment includes its NGL and natural gas marketing business, an NGL fractionator and storage facilities near Conway, Kansas. The Company markets NGL products to a wide range of users in the energy and petrochemical industries. The NGL marketing business transports and markets its equity NGLs from the production at its processing plants, and also markets NGLs on behalf of third-party NGL producers, including some of our fee-based processing customers, and the NGL volumes owned by Discovery. The Company also market olefin products to a wide range of users in the energy and petrochemical industries. Its gathering and processing business competes with other midstream companies, interstate and intrastate pipelines, producers and independent gatherers and processors. The Company's operations are subject to federal environmental laws and regulations as well as the state, local, and tribal laws and regulations adopted by the jurisdictions in which they operate.
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