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. Manitoba Telecom Services's current ratio for the quarter that ended in Sep. 2016 was 0.40.
Manitoba Telecom Services has a current ratio of 0.40. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Manitoba Telecom Services 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 Manitoba Telecom Services's Current Ratio or its related term are showing as below:
MOBAF's Current Ratio is not ranked *
in the Telecommunication Services industry.
Industry Median: 1.015 * Ranked among companies with meaningful Current Ratio only.
Manitoba Telecom Services 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 Manitoba Telecom Services's Current Ratio
For the Telecom Services subindustry, Manitoba Telecom Services'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.
Manitoba Telecom Services's Current Ratio Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Manitoba Telecom Services's Current Ratio distribution charts can be found below:
* The bar in red indicates where Manitoba Telecom Services's Current Ratio falls into.
Manitoba Telecom Services 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.
Manitoba Telecom Services's Current Ratio for the fiscal year that ended in Dec. 2015 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.
Manitoba Telecom Services (OTCPK:MOBAF) 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.
Manitoba Telecom Services Current Ratio Related Terms
Thank you for viewing the detailed overview of Manitoba Telecom Services's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Manitoba Telecom Services (Manitoba Telecom Services) Business Description
Manitoba Telecom Services Inc was incorporated on April 28, 1933. The Company provides communication solutions in Canada. It has two reportable operating segments, MTS and Allstream. MTS is the telecommunications provider in Manitoba, delivering a full suite of wireless, high-speed internet, IP television, converged IP, unified communications, local access, as well as long distance and legacy data services under the MTS brand and security and home alarm monitoring services through a wholly owned subsidiary, AAA Alarm Systems Ltd. ('AAA Alarm'). This complete range of products is unmatched by any other provider in the province. MTS provides services to both residential and business customers in Manitoba. Allstream is a competitor in the national business and wholesale markets; offering small, medium and large businesses and government organizations a portfolio of telecommunications solutions tailored to meet the needs. Allstream's products are IP-based communications, unified communications, voice and data connectivity, and security services. Allstream operates an extensive national fiber optic network that spans almost 30,000 kilometers, and provides international connections through strategic alliances and interconnection agreements with other international telecommunications service providers.
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