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. Rautaruukki Oyj's current ratio for the quarter that ended in Sep. 2014 was 1.05.
Rautaruukki Oyj has a current ratio of 1.05. It generally indicates good short-term financial strength.
The historical rank and industry rank for Rautaruukki Oyj's Current Ratio or its related term are showing as below:
OHEL:RTRKS'
s Current Ratio Range Over the Past 10 Years
Min: 1.05 Med: 1.44 Max: 2.12
Current: 1.05
During the past 13 years, Rautaruukki Oyj's highest Current Ratio was 2.12. The lowest was 1.05. And the median was 1.44.
OHEL:RTRKS's Current Ratio is not ranked
in the Steel industry.
Industry Median: 1.67
vs OHEL:RTRKS: 1.05
Rautaruukki Oyj Current Ratio Historical Data
The historical data trend for Rautaruukki Oyj'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 Rautaruukki Oyj's Current Ratio
For the Steel subindustry, Rautaruukki Oyj'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.
Rautaruukki Oyj's Current Ratio Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Rautaruukki Oyj's Current Ratio distribution charts can be found below:
* The bar in red indicates where Rautaruukki Oyj's Current Ratio falls into.
Rautaruukki Oyj 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.
Rautaruukki Oyj's Current Ratio for the fiscal year that ended in Dec. 2013 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.
Rautaruukki Oyj (OHEL:RTRKS) 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.
Rautaruukki Oyj Current Ratio Related Terms
Thank you for viewing the detailed overview of Rautaruukki Oyj's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Rautaruukki Oyj supplies metal-based components, systems and integrated systems to construction and the engineering industry. The company's operations are structured into three divisions: construction, engineering, and steel business. Its construction division supplies steel construction solutions for commercial and industrial construction, as well as for infrastructure foundation and transport infrastructure projects. The divisions' product portfolio includes building frames, wall and roofing products, integrated systems for single and multi-story construction, bridges, traffic noise barriers and highway guard rails, piles, retaining wall structures and foundations for harbor construction. Its customers include developers, designs and builders of commercial, industrial and office premises, logistics and sports complexes and infrastructure services as well as roofing suppliers. Its engineering division supplies systems and components to the engineering industry, such as cabins, booms, masts and frames for goods and container handling, the construction industry and mining and forestry, telescopic booms, frames and parts; windmill components and oil sumps. Main markets serve international European companies, specifically the lifting, handling, and transportation equipment industry, the energy industry, the marine and offshore industry and the paper and wood industry. The Metals division supplies steel products associated with prefabrication, logistics and storage services. The division's product portfolio consists of hot and cold-rolled steels, metal and color-coated steels, tubes and profiles and stainless steel and aluminum sold as trading products. Its customers include the transportation equipment, construction, engineering and electronics industries in Europe and Russia.
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