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. Kosmos Energy's current ratio for the quarter that ended in Dec. 2023 was 0.76.
Kosmos Energy has a current ratio of 0.76. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Kosmos Energy 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 Kosmos Energy's Current Ratio or its related term are showing as below:
KOS'
s Current Ratio Range Over the Past 10 Years
Min: 0.76 Med: 1.15 Max: 2.25
Current: 0.76
During the past 13 years, Kosmos Energy's highest Current Ratio was 2.25. The lowest was 0.76. And the median was 1.15.
KOS's Current Ratio is ranked worse than 79.33% of 1074
companies
in the Oil & Gas industry
Industry Median: 1.34
vs KOS: 0.76
Kosmos Energy Current Ratio Historical Data
The historical data trend for Kosmos Energy'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 Kosmos Energy's Current Ratio
For the Oil & Gas E&P subindustry, Kosmos Energy'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.
Kosmos Energy's Current Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Kosmos Energy's Current Ratio distribution charts can be found below:
* The bar in red indicates where Kosmos Energy's Current Ratio falls into.
Kosmos Energy 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.
Kosmos Energy's Current Ratio for the fiscal year that ended in Dec. 2023 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.
Kosmos Energy (NYSE:KOS) 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.
Kosmos Energy Current Ratio Related Terms
Thank you for viewing the detailed overview of Kosmos Energy's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Kosmos Energy (Kosmos Energy) Business Description
Kosmos Energy Ltd is an independent oil and gas exploration and production company focused on frontier and emerging areas along the Atlantic Margin. The company focuses on field developments designed to accelerate production. Kosmos' exploration is tied to a geologically based approach geared toward the identification of petroleum systems. Its process starts with geologic studies that assess a region's subsurface but also incorporates basin modeling as well as techniques to identify reservoir/seal pair development and trap definition. In addition, a 3D seismic analysis is done to identify prospective traps of interest. In tandem with the subsurface analysis, a country-specific analysis is done to get an understanding of above-ground dynamics before targeting specific licenses.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
KOS has been successfully added to your 