EDUC has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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. Educational Development Corp's current ratio for the quarter that ended in Aug. 2016 was 1.20.
Educational Development Corp has a current ratio of 1.20. It generally indicates good short-term financial strength.
During the past 13 years, Educational Development Corp's highest Current Ratio was 5.45. The lowest was 1.11. And the median was 3.38.
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.
Educational Development Corp's Current Ratio for the fiscal year that ended in Feb. 2016 is calculated as
|Current Ratio (A: Feb. 2016 )||=||Total Current Assets (A: Feb. 2016 )||/||Total Current Liabilities (A: Feb. 2016 )|
Educational Development Corp's Current Ratio for the quarter that ended in Aug. 2016 is calculated as
|Current Ratio (Q: Aug. 2016 )||=||Total Current Assets (Q: Aug. 2016 )||/||Total Current Liabilities (Q: Aug. 2016 )|
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.
Educational Development Corp Annual Data
Educational Development Corp Quarterly Data
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.