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Purple Group (JSE:PPE) Current Ratio : 1.28 (As of Feb. 2024)


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What is Purple Group 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. Purple Group's current ratio for the quarter that ended in Feb. 2024 was 1.28.

Purple Group has a current ratio of 1.28. It generally indicates good short-term financial strength.

The historical rank and industry rank for Purple Group's Current Ratio or its related term are showing as below:

JSE:PPE' s Current Ratio Range Over the Past 10 Years
Min: 0.84   Med: 1   Max: 1.28
Current: 1.28

During the past 13 years, Purple Group's highest Current Ratio was 1.28. The lowest was 0.84. And the median was 1.00.

JSE:PPE's Current Ratio is ranked better than
52.15% of 535 companies
in the Diversified Financial Services industry
Industry Median: 1.12 vs JSE:PPE: 1.28

Purple Group Current Ratio Historical Data

The historical data trend for Purple 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.

* Premium members only.

Purple Group Current Ratio Chart

Purple Group Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Current Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.94 1.00 1.07 1.13 1.24

Purple Group Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 Premium Member Only Premium Member Only Premium Member Only 1.14 1.13 1.04 1.24 1.28

Competitive Comparison of Purple Group's Current Ratio

For the Financial Conglomerates subindustry, Purple 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.


Purple Group's Current Ratio Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Purple Group's Current Ratio distribution charts can be found below:

* The bar in red indicates where Purple Group's Current Ratio falls into.



Purple 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.

Purple Group's Current Ratio for the fiscal year that ended in Aug. 2023 is calculated as

Current Ratio (A: Aug. 2023 )=Total Current Assets (A: Aug. 2023 )/Total Current Liabilities (A: Aug. 2023 )
=463.244/374.761
=1.24

Purple Group's Current Ratio for the quarter that ended in Feb. 2024 is calculated as

Current Ratio (Q: Feb. 2024 )=Total Current Assets (Q: Feb. 2024 )/Total Current Liabilities (Q: Feb. 2024 )
=423.173/330.208
=1.28

* 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.


Purple Group  (JSE:PPE) 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.


Purple Group Current Ratio Related Terms

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Purple Group (JSE:PPE) Business Description

Traded in Other Exchanges
N/A
Address
173 Oxford Road, WeWork - Coworking & Office Space1F, Rosebank, Johannesburg, GT, ZAF, 2196
Purple Group Ltd operates as a financial services company, which engages in derivatives trading and asset management. It operates its business through the following segments: GT247.com and Emperor Asset Management (EAM); EasyEquities Group and Head Office and Investments. The GT247.com and EAM segment involves trading and asset management operations. The EasyEquities segment is the web-based investment platform of the Group and includes EasyProperties, EasyCrypto, and RISE. The Head Office and Investments represent fees and dividends earned on investments and fair value adjustments made against them, as well as head office costs.

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