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. Ajinomoto Co's current ratio for the quarter that ended in Dec. 2023 was 1.37.
Ajinomoto Co has a current ratio of 1.37. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ajinomoto Co's Current Ratio or its related term are showing as below:
AJINY'
s Current Ratio Range Over the Past 10 Years
Min: 1.37 Med: 2.02 Max: 2.54
Current: 1.37
During the past 13 years, Ajinomoto Co's highest Current Ratio was 2.54. The lowest was 1.37. And the median was 2.02.
AJINY's Current Ratio is ranked worse than 61.02% of 1911
companies
in the Consumer Packaged Goods industry
Industry Median: 1.66
vs AJINY: 1.37
Ajinomoto Co Current Ratio Historical Data
The historical data trend for Ajinomoto Co'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 Ajinomoto Co's Current Ratio
For the Packaged Foods subindustry, Ajinomoto Co'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.
Ajinomoto Co's Current Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Ajinomoto Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Ajinomoto Co's Current Ratio falls into.
Ajinomoto Co 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.
Ajinomoto Co's Current Ratio for the fiscal year that ended in Mar. 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.
Ajinomoto Co (OTCPK:AJINY) 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.
Ajinomoto Co Current Ratio Related Terms
Thank you for viewing the detailed overview of Ajinomoto Co's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ajinomoto is Japan's leading food company specializing in amino acids and seasonings derived from amino acid fermentation technologies. It also produces processed foods including dry soup mixes, frozen foods, and beverage products. Apart from the consumer business, it is a key supplier of MSG and nucleotides to global food manufacturers including Nestle. The food business represents nearly three fourths of group sales and 80%-plus of profits with nearly two thirds generated overseas. Healthcare and function materials (mainly Ajinomoto build-up film, or ABF), the key growth drivers through 2030, make up the balance of its business portfolio. The nonfood businesses are expected to contribute half of the group profits by 2030, boosted by ABF and CDMO growth.
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