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IHS Holding (IHS Holding) Current Ratio : 0.80 (As of Dec. 2023)


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What is IHS Holding 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. IHS Holding's current ratio for the quarter that ended in Dec. 2023 was 0.80.

IHS Holding has a current ratio of 0.80. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If IHS Holding 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 IHS Holding's Current Ratio or its related term are showing as below:

IHS' s Current Ratio Range Over the Past 10 Years
Min: 0.8   Med: 1.45   Max: 2.16
Current: 0.8

During the past 6 years, IHS Holding's highest Current Ratio was 2.16. The lowest was 0.80. And the median was 1.45.

IHS's Current Ratio is ranked worse than
67.68% of 393 companies
in the Telecommunication Services industry
Industry Median: 1.02 vs IHS: 0.80

IHS Holding Current Ratio Historical Data

The historical data trend for IHS Holding'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.

IHS Holding Current Ratio Chart

IHS Holding Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Current Ratio
Get a 7-Day Free Trial 2.16 1.45 1.72 0.99 0.80

IHS Holding Quarterly Data
Dec18 Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 0.99 1.13 0.93 0.92 0.80

Competitive Comparison of IHS Holding's Current Ratio

For the Telecom Services subindustry, IHS Holding'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.


IHS Holding's Current Ratio Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, IHS Holding's Current Ratio distribution charts can be found below:

* The bar in red indicates where IHS Holding's Current Ratio falls into.



IHS Holding 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.

IHS Holding's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Current Ratio (A: Dec. 2023 )=Total Current Assets (A: Dec. 2023 )/Total Current Liabilities (A: Dec. 2023 )
=972.607/1221.956
=0.80

IHS Holding's Current Ratio for the quarter that ended in Dec. 2023 is calculated as

Current Ratio (Q: Dec. 2023 )=Total Current Assets (Q: Dec. 2023 )/Total Current Liabilities (Q: Dec. 2023 )
=972.607/1221.956
=0.80

* 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.


IHS Holding  (NYSE:IHS) 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.


IHS Holding Current Ratio Related Terms

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IHS Holding (IHS Holding) Business Description

Traded in Other Exchanges
Address
123 Victoria Street, 1 Cathedral Piazza, London, GBR, SW1E 5BP
IHS Holding Ltd is an independent owner, operator, and developer of shared telecommunications infrastructure. The company provides telecommunications infrastructure to its customers, most of who are MNOs, who in turn provide wireless voice and data services to their end-users. Its geographical segments are Nigeria, Sub-Saharan Africa, Middle East and North Africa (MENA), and Latin America (Latam). The majority of its revenue is derived from Nigeria.