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. Genel Energy's current ratio for the quarter that ended in Dec. 2023 was 6.25.
Genel Energy has a current ratio of 6.25. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Genel Energy's Current Ratio or its related term are showing as below:
LSE:GENL'
s Current Ratio Range Over the Past 10 Years
Min: 2.16 Med: 5.43 Max: 7.7
Current: 6.25
During the past 13 years, Genel Energy's highest Current Ratio was 7.70. The lowest was 2.16. And the median was 5.43.
LSE:GENL's Current Ratio is ranked better than 91.47% of 1078
companies
in the Oil & Gas industry
Industry Median: 1.325
vs LSE:GENL: 6.25
Genel Energy Current Ratio Historical Data
The historical data trend for Genel 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 Genel Energy's Current Ratio
For the Oil & Gas E&P subindustry, Genel 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.
Genel Energy's Current Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Genel Energy's Current Ratio distribution charts can be found below:
* The bar in red indicates where Genel Energy's Current Ratio falls into.
Genel 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.
Genel 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.
Genel Energy (LSE:GENL) 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.
Genel Energy Current Ratio Related Terms
Thank you for viewing the detailed overview of Genel Energy's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Genel Energy PLC produces oil and gas primarily in the Kurdistan region of Iraq. The Company has two reportable business segments: Production and Pre-production. Capital allocation decisions for the production segment are considered in the context of the cash flows expected from the production and sale of crude oil. The production segment is comprised of the producing fields on the Tawke PSC , the Taq Taq PSC and the Sarta PSC which are located in the KRI and make sales predominantly to the KRG. The pre-production segment is comprised of discovered resource held under the Qara Dagh PSC, the Bina Bawi PSC and the Miran PSC , all in the KRI and exploration activity, principally located in Somaliland and Morocco.
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