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. Postmedia Network Canada's current ratio for the quarter that ended in Feb. 2024 was 0.75.
Postmedia Network Canada has a current ratio of 0.75. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Postmedia Network Canada 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 Postmedia Network Canada's Current Ratio or its related term are showing as below:
TSX:PNC.A'
s Current Ratio Range Over the Past 10 Years
Min: 0.28 Med: 1.08 Max: 1.55
Current: 0.75
During the past 13 years, Postmedia Network Canada's highest Current Ratio was 1.55. The lowest was 0.28. And the median was 1.08.
TSX:PNC.A's Current Ratio is ranked worse than 81.96% of 1059
companies
in the Media - Diversified industry
Industry Median: 1.62
vs TSX:PNC.A: 0.75
Postmedia Network Canada 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 Postmedia Network Canada's Current Ratio
For the Publishing subindustry, Postmedia Network Canada'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.
Postmedia Network Canada's Current Ratio Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Postmedia Network Canada's Current Ratio distribution charts can be found below:
* The bar in red indicates where Postmedia Network Canada's Current Ratio falls into.
Postmedia Network Canada 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.
Postmedia Network Canada's Current Ratio for the fiscal year that ended in Aug. 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.
Postmedia Network Canada (TSX:PNC.A) 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.
Postmedia Network Canada Current Ratio Related Terms
Thank you for viewing the detailed overview of Postmedia Network Canada's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Postmedia Network Canada (TSX:PNC.A) Business Description
Postmedia Network Canada Corp is a holding company. It operates through the Newsmedia segment. The company's business consists of news and information gathering and dissemination operations, with products offered in local, regional and metropolitan markets in Canada through multiple print, online and mobile platforms. Postmedia's operations include an extensive distribution network, which also offers distribution services, for advertising flyers and parcels. The combination of these distribution platforms provides audiences with a variety of media through which to access and interact with Postmedia's content. The breadth of the company's reach and the diversity of its content enable advertisers to reach target audiences on a local, regional or national scale.
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