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. Sumitomo Rubber Industries's current ratio for the quarter that ended in Dec. 2023 was 1.89.
Sumitomo Rubber Industries has a current ratio of 1.89. It generally indicates good short-term financial strength.
The historical rank and industry rank for Sumitomo Rubber Industries's Current Ratio or its related term are showing as below:
TSE:5110'
s Current Ratio Range Over the Past 10 Years
Min: 1.45 Med: 1.62 Max: 1.89
Current: 1.89
During the past 13 years, Sumitomo Rubber Industries's highest Current Ratio was 1.89. The lowest was 1.45. And the median was 1.62.
TSE:5110's Current Ratio is ranked better than 64.43% of 1310
companies
in the Vehicles & Parts industry
Industry Median: 1.525
vs TSE:5110: 1.89
Sumitomo Rubber Industries 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 Sumitomo Rubber Industries's Current Ratio
For the Auto Parts subindustry, Sumitomo Rubber Industries'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.
Sumitomo Rubber Industries's Current Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sumitomo Rubber Industries's Current Ratio distribution charts can be found below:
* The bar in red indicates where Sumitomo Rubber Industries's Current Ratio falls into.
Sumitomo Rubber Industries 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.
* 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.
Sumitomo Rubber Industries (TSE:5110) 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.
Sumitomo Rubber Industries Current Ratio Related Terms
Thank you for viewing the detailed overview of Sumitomo Rubber Industries's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Sumitomo Rubber Industries (TSE:5110) Business Description
Sumitomo Rubber Industries makes and sells rubber tires, sports equipment, and other products in three segments based on product type. The tire segment, which generates the majority of revenue, sells rubber tires for automobiles and motorcycles under the Dunlop and Falken brand names. The sports segment sells golf, tennis, and fitness equipment under the Srixon, XXIO, Cleveland, and Dunlop brand names. The industrial and other products segment sells rubber parts for printers, artificial turf for sporting use, floor coating materials, portable ramps, gloves, tubes, and valves. More revenue comes from Japan than any other region.
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