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. Woolworths Group's current ratio for the quarter that ended in Dec. 2023 was 0.58.
Woolworths Group has a current ratio of 0.58. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Woolworths Group 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 Woolworths Group's Current Ratio or its related term are showing as below:
WOLWF'
s Current Ratio Range Over the Past 10 Years
Min: 0.53 Med: 0.76 Max: 0.95
Current: 0.58
During the past 13 years, Woolworths Group's highest Current Ratio was 0.95. The lowest was 0.53. And the median was 0.76.
WOLWF's Current Ratio is ranked worse than 93.99% of 316
companies
in the Retail - Defensive industry
Industry Median: 1.29
vs WOLWF: 0.58
Woolworths Group Current Ratio Historical Data
The historical data trend for Woolworths Group'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 Woolworths Group's Current Ratio
For the Grocery Stores subindustry, Woolworths Group'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.
Woolworths Group's Current Ratio Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Woolworths Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Woolworths Group's Current Ratio falls into.
Woolworths Group 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.
Woolworths Group's Current Ratio for the fiscal year that ended in Jun. 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.
Woolworths Group (OTCPK:WOLWF) 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.
Woolworths Group Current Ratio Related Terms
Thank you for viewing the detailed overview of Woolworths Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Woolworths Group (Woolworths Group) Business Description
Woolworths is Australia's largest retailer. Operations include supermarkets in Australia and New Zealand, and the Big W discount department stores. The Australian food division constitutes the majority of group EBIT, followed by New Zealand supermarkets, while Big W is a minor contributor.
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