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. NanoTech Entertainment's current ratio for the quarter that ended in Mar. 2010 was 0.06.
NanoTech Entertainment has a current ratio of 0.06. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If NanoTech Entertainment 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 NanoTech Entertainment's Current Ratio or its related term are showing as below:
NTEK's Current Ratio is not ranked *
in the Interactive Media industry.
Industry Median: 2.13 * Ranked among companies with meaningful Current Ratio only.
NanoTech Entertainment 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 NanoTech Entertainment's Current Ratio
For the Electronic Gaming & Multimedia subindustry, NanoTech Entertainment'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.
NanoTech Entertainment's Current Ratio Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, NanoTech Entertainment's Current Ratio distribution charts can be found below:
* The bar in red indicates where NanoTech Entertainment's Current Ratio falls into.
NanoTech Entertainment 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.
NanoTech Entertainment's Current Ratio for the fiscal year that ended in Jun. 2009 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.
NanoTech Entertainment (OTCPK:NTEK) 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.
NanoTech Entertainment Current Ratio Related Terms
Thank you for viewing the detailed overview of NanoTech Entertainment's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
NanoTech Entertainment (NanoTech Entertainment) Business Description
NanoTech Entertainment Inc operates as a manufacturer and developer of technology, games, television content, consumer goods, mobile applications, and consumer software. The portfolio of the company includes Ultraflix which offers 4K Ultra HD video for its subscribers, 4K studios which offers hardware and software solutions for 4K Ultra high definition output, and Ultra Media group which is a content licensing and production company that focuses on acquisition and creation of digital content. The company generates revenue from licensing products to third parties for manufacturing, distribution, manufacture, and sale and rental of products directly to consumers.
NanoTech Entertainment (NanoTech Entertainment) Headlines
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