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. Nextleaf Solutions's current ratio for the quarter that ended in Mar. 2024 was 1.28.
Nextleaf Solutions has a current ratio of 1.28. It generally indicates good short-term financial strength.
The historical rank and industry rank for Nextleaf Solutions's Current Ratio or its related term are showing as below:
XCNQ:OILS'
s Current Ratio Range Over the Past 10 Years
Min: 0.66 Med: 1.28 Max: 385
Current: 1.28
During the past 7 years, Nextleaf Solutions's highest Current Ratio was 385.00. The lowest was 0.66. And the median was 1.28.
XCNQ:OILS's Current Ratio is ranked worse than 67.5% of 1074
companies
in the Drug Manufacturers industry
Industry Median: 1.85
vs XCNQ:OILS: 1.28
Nextleaf Solutions Current Ratio Historical Data
The historical data trend for Nextleaf Solutions'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 Nextleaf Solutions's Current Ratio
For the Drug Manufacturers - Specialty & Generic subindustry, Nextleaf Solutions'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.
Nextleaf Solutions's Current Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Nextleaf Solutions's Current Ratio distribution charts can be found below:
* The bar in red indicates where Nextleaf Solutions's Current Ratio falls into.
Nextleaf Solutions 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.
Nextleaf Solutions's Current Ratio for the fiscal year that ended in Sep. 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.
Nextleaf Solutions (XCNQ:OILS) 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.
Nextleaf Solutions Current Ratio Related Terms
Thank you for viewing the detailed overview of Nextleaf Solutions's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Nextleaf Solutions (XCNQ:OILS) Business Description
Nextleaf Solutions Ltd is is a Canadian cannabis extractor and processor, with a focus on developing intellectual property for the extraction, distillation formulation, and delivery of cannabinoids. The Company has a single reportable segment being the provision of goods and services to the cannabis industry in Canada. All the Company's revenues are generated in Canada. Revenue from sale of goods and services includes sales of bulk distillate, branded (Glacial Gold) vape pens, oils, and softgels (branded extract products), and private label which includes toll processing and other services. Majority being from Branded extract products.
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