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. Nihon Kohden's current ratio for the quarter that ended in Dec. 2023 was 4.03.
Nihon Kohden has a current ratio of 4.03. 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 Nihon Kohden's Current Ratio or its related term are showing as below:
NHNKY'
s Current Ratio Range Over the Past 10 Years
Min: 2.58 Med: 3.15 Max: 4.03
Current: 4.03
During the past 13 years, Nihon Kohden's highest Current Ratio was 4.03. The lowest was 2.58. And the median was 3.15.
NHNKY's Current Ratio is ranked better than 66.63% of 866
companies
in the Medical Devices & Instruments industry
Industry Median: 2.725
vs NHNKY: 4.03
Nihon Kohden Current Ratio Historical Data
The historical data trend for Nihon Kohden'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 Nihon Kohden's Current Ratio
For the Medical Devices subindustry, Nihon Kohden'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.
Nihon Kohden's Current Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Nihon Kohden's Current Ratio distribution charts can be found below:
* The bar in red indicates where Nihon Kohden's Current Ratio falls into.
Nihon Kohden 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.
Nihon Kohden's Current Ratio for the fiscal year that ended in Mar. 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.
Nihon Kohden (OTCPK:NHNKY) 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.
Nihon Kohden Current Ratio Related Terms
Thank you for viewing the detailed overview of Nihon Kohden's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Nihon Kohden Corp manufactures electronic medical equipment. The firm operates in four categories: physiological measuring equipment, treatment equipment, patient monitors, and other medical equipment. The patient monitors segment contributes the largest proportion of revenue and includes continuous monitoring instruments and clinical information systems. The physiological measuring equipment segment sells electroencephalographs, electrocardiographs, and diagnostic information systems. The treatment equipment segment sells defibrillators, pacemakers, ventilators, and related consumables. The other medical equipment segment sells automated hematology analyzers, ultrasound diagnostic equipment, and other laboratory equipment. Nihon Kohden generates the majority of its revenue in Japan.
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