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. Intersil's current ratio for the quarter that ended in Dec. 2016 was 2.56.
Intersil has a current ratio of 2.56. It generally indicates good short-term financial strength.
The historical rank and industry rank for Intersil's Current Ratio or its related term are showing as below:
ISIL's Current Ratio is not ranked *
in the Semiconductors industry.
Industry Median: 2.43 * Ranked among companies with meaningful Current Ratio only.
Intersil Current Ratio Historical Data
The historical data trend for Intersil'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 Intersil's Current Ratio
For the Semiconductors subindustry, Intersil'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.
Intersil's Current Ratio Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Intersil's Current Ratio distribution charts can be found below:
* The bar in red indicates where Intersil's Current Ratio falls into.
Intersil 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.
Intersil's Current Ratio for the fiscal year that ended in Dec. 2016 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.
Intersil (NAS:ISIL) 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.
Intersil Current Ratio Related Terms
Thank you for viewing the detailed overview of Intersil's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Intersil Corp was formed in August 199. The Company designs and develops power management and precision analog integrated circuits, or ICs. The Company is a supplier of power management and precision analog technology for many of the rigorous applications in the infrastructure, industrial, automotive, military, aerospace, computing, and consumer markets. It supplies power IC solutions for battery management, processor power management, and display power management, including power regulators, converters and controllers, as well as fully integrated power modules. It also provides precision analog components such as amplifiers and buffers, proximity and light sensors, data converters, optoelectronics, video decoders and interface products. As a supplier of radiation-hardened devices to the military and aerospace industries, its product development methodologies reflect the long-term experience it has in designing products to meet the standards for reliability and performance in harsh environmental conditions, such as outer space. The Company divides its opportunities into two market categories: industrial & infrastructure and computing & consumer. The industrial & infrastructure market category includes products for power, automotive, aerospace, and broad-line industrial applications. Power products include industrial & infrastructure products - digital power controllers, modules and switching regulators, as well as other general purpose power devices. In automotive, it is targeting both infotainment and power applications. Its video decoders form a building block for console displays and rear view camera displays that are becoming a common safety feature in mid- to high-end vehicles and are required in all passenger cars in the U.S. beginning in 2018. It is applying its power management technology to expand its presence in infotainment and other opportunities within the automobile passenger cabin, and addressing the growing market for battery management within hybrid and fully electric vehicles. Its radiation-hardened products offer advantages for the rigorous applications, including commercial aerospace, and make up another large component of its industrial & infrastructure revenue. Its computing heritage has resulted in a suite of products for analog and digital power management addressing the rapid expansion of cloud computing and communications infrastructure. Its products also enable multiple functions in hundreds of other industrial systems from factory automation to test and measurement equipment. The Company sells its products through direct geographical salesforce that operates in the North American, European, Japanese and Asia/Pacific markets and a network of distributors. The Company competes in its target markets with many companies that may have greater resources, including, but not limited to, Analog Devices, Infineon, Linear Technology, Maxim Integrated Products, ON Semiconductor and Texas Instruments.
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