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. Pembury Lifestyle Group's current ratio for the quarter that ended in Jun. 2019 was 0.41.
Pembury Lifestyle Group has a current ratio of 0.41. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Pembury Lifestyle Group 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 Pembury Lifestyle Group's Current Ratio or its related term are showing as below:
JSE:PEM's Current Ratio is not ranked *
in the Education industry.
Industry Median: 1.29 * Ranked among companies with meaningful Current Ratio only.
Pembury Lifestyle Group 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 Pembury Lifestyle Group's Current Ratio
For the Education & Training Services subindustry, Pembury Lifestyle 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.
Pembury Lifestyle Group's Current Ratio Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, Pembury Lifestyle Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Pembury Lifestyle Group's Current Ratio falls into.
Pembury Lifestyle 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.
Pembury Lifestyle Group's Current Ratio for the fiscal year that ended in Dec. 2018 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.
Pembury Lifestyle Group (JSE:PEM) 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.
Pembury Lifestyle Group Current Ratio Related Terms
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Pembury Lifestyle Group (JSE:PEM) Business Description
Pembury Lifestyle Group Ltd is a South Africa based group that provides private education through its independent schools, with an intention to own the properties from which the schools operate and operating of retirement lodges. Its reportable segments are: PLG Properties - investment properties; Pembury Schools - developing and managing independent schools; and PLG Retirement Villages - developing and managing retirement villages. The main revenue is generated through the Pembury Schools segment that includes fees from the provision of accessible, affordable, private education and related services.
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