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. Daystar Technologies's current ratio for the quarter that ended in Sep. 2012 was 0.05.
Daystar Technologies has a current ratio of 0.05. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Daystar Technologies 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 Daystar Technologies's Current Ratio or its related term are showing as below:
DSTI's Current Ratio is not ranked *
in the Semiconductors industry.
Industry Median: 2.42 * Ranked among companies with meaningful Current Ratio only.
Daystar Technologies Current Ratio Historical Data
The historical data trend for Daystar Technologies'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 Daystar Technologies's Current Ratio
For the Semiconductors subindustry, Daystar Technologies'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.
Daystar Technologies's Current Ratio Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Daystar Technologies's Current Ratio distribution charts can be found below:
* The bar in red indicates where Daystar Technologies's Current Ratio falls into.
Daystar Technologies 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.
Daystar Technologies's Current Ratio for the fiscal year that ended in Dec. 2011 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.
Daystar Technologies (OTCPK:DSTI) 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.
Daystar Technologies Current Ratio Related Terms
Thank you for viewing the detailed overview of Daystar Technologies's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Daystar Technologies (Daystar Technologies) Business Description
DayStar Technologies, Inc., a Delaware corporation, was incorporated in February 1997. It completed its initial public offering in February 2004. It is a development stage enterprise, which develops, manufactures and markets products for the solar photovoltaic (PV) industry. The Company has developed a proprietary thin film deposition technology for solar photovoltaic (PV) products. It utilizes a proprietary one-step sputter deposition process and has manufactured a commercial scale deposition tool to apply high-efficiency copper indium gallium diselenide (CIGS) material over large area glass substrates in a continuous fashion. The Company intends to integrate this tool with commercially available thin film manufacturing equipment, which will provide it with a critically differentiated manufacturing process to produce low-cost monolithically integrated, CIGS-on-glass modules that address the grid-tied, ground-based PV market. It has initiated construction of its initial module production line. To facilitate its entry into the addressable solar PV market, it has entered into a contract with Blitzstrom GmbH, one of thin film solar PV integrators, that commits Blitzstrom to purchase a minimum of 50% of its production through 2011, subject to these products meeting defined performance criteria. The solar electricity industry currently supplies modules used in solar PV systems primarily for grid-connected systems.
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