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. Mattress Firm Holding's current ratio for the quarter that ended in Jul. 2016 was 0.92.
Mattress Firm Holding has a current ratio of 0.92. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Mattress Firm 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 Mattress Firm Holding's Current Ratio or its related term are showing as below:
MFRM's Current Ratio is not ranked *
in the Retail - Cyclical industry.
Industry Median: 1.59 * Ranked among companies with meaningful Current Ratio only.
Mattress Firm Holding Current Ratio Historical Data
The historical data trend for Mattress Firm 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.
Competitive Comparison of Mattress Firm Holding's Current Ratio
For the Specialty Retail subindustry, Mattress Firm 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.
Mattress Firm Holding's Current Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Mattress Firm Holding's Current Ratio distribution charts can be found below:
* The bar in red indicates where Mattress Firm Holding's Current Ratio falls into.
Mattress Firm 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.
Mattress Firm Holding's Current Ratio for the fiscal year that ended in Jan. 2016 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.
Mattress Firm Holding (NAS:MFRM) 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.
Mattress Firm Holding Current Ratio Related Terms
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Mattress Firm Holding (Mattress Firm Holding) Business Description
Mattress Firm Holding Corp was incorporated in Delaware in January 2007. It is engaged in retail sale of mattresses and bedding-related products in metropolitan areas in the United States through company-operated and franchise-operated mattress specialty stores. The Company and its franchisees operated approximately 2,400 stores, under the Mattress Firm name, in 105 markets across 41 states. The Company's operating segments consist of its: company-operated store operations, with each geographic region considered a separate operating segment; e-commerce website operations; multi-channel sales operations, consisting of special events; and franchise operations, which consists of franchise fees and royalty income earned on the sales from franchisee-operated mattress specialty stores. The Company-operated store regions, e-commerce website and multi-channel operating segments are aggregated into single segment ("retail segment"). It offers approximately over 75 different models and styles of conventional and specialty mattresses, Conventional mattresses, Specialty mattresses, furniture and accessories, including bed frames, mattress pads and pillows. There are two distribution channels of Company, Wholesale & Retail. The U.S. wholesale mattress industry includes mattresses and their supporting box springs. The U.S. retail mattress market is made up of mattress specialty retailers, furniture retailers and department stores. It operates 55 distribution centers, supporting all of its company-operated stores. The Company's important trademarks include Mattress Firm, Comfort By Color, Mattress Firm Red Carpet Delivery Service, Hampton & Rhodes, Mattress Firm Super Center, Happiness Guarantee, Sleep Happy & among others. The Company's operations are subject to federal, state and local consumer protection regulations and other regulations relating specifically to the bedding industry.
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