VAR Resources (TSXV:VAR) Current Ratio : 0.69 (As of Jul. 2022)

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What is VAR Resources Current Ratio?

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. VAR Resources's current ratio for the quarter that ended in Jul. 2022 was 0.69.

VAR Resources has a current ratio of 0.69. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If VAR Resources 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 VAR Resources's Current Ratio or its related term are showing as below:

TSXV:VAR's Current Ratio is not ranked ^*
in the Metals & Mining industry.
Industry Median: 2.08
* Ranked among companies with meaningful Current Ratio only.

VAR Resources Current Ratio Historical Data

The historical data trend for VAR Resources'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.

* Premium members only.

VAR Resources Current Ratio Chart

VAR Resources Annual Data

Trend

Oct12

Oct13

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Current Ratio

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1.47

0.30

0.03

0.01

0.67

VAR Resources Quarterly Data
	Oct17	Jan18	Apr18	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22
Current Ratio	Get a 7-Day Free Trial															1.40	0.67	0.23	0.12	0.69

Competitive Comparison of VAR Resources's Current Ratio

For the Other Industrial Metals & Mining subindustry, VAR Resources'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.

VAR Resources's Current Ratio Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, VAR Resources's Current Ratio distribution charts can be found below:

* The bar in red indicates where VAR Resources's Current Ratio falls into.

VAR Resources 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.

VAR Resources's Current Ratio for the fiscal year that ended in Oct. 2021 is calculated as

Current Ratio (A: Oct. 2021 )	=	Total Current Assets (A: Oct. 2021 )	/	Total Current Liabilities (A: Oct. 2021 )
	=	0.041	/	0.061
	=	0.67

VAR Resources's Current Ratio for the quarter that ended in Jul. 2022 is calculated as

Current Ratio (Q: Jul. 2022 )	=	Total Current Assets (Q: Jul. 2022 )	/	Total Current Liabilities (Q: Jul. 2022 )
	=	0.096	/	0.14
	=	0.69

VAR Resources (TSXV:VAR) 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.

VAR Resources Current Ratio Related Terms

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