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. Kumba Iron Ore's current ratio for the quarter that ended in Dec. 2023 was 2.68.
Kumba Iron Ore has a current ratio of 2.68. It generally indicates good short-term financial strength.
The historical rank and industry rank for Kumba Iron Ore's Current Ratio or its related term are showing as below:
KIROY'
s Current Ratio Range Over the Past 10 Years
Min: 1.17 Med: 3.21 Max: 4.79
Current: 2.68
During the past 13 years, Kumba Iron Ore's highest Current Ratio was 4.79. The lowest was 1.17. And the median was 3.21.
KIROY's Current Ratio is ranked better than 73.62% of 633
companies
in the Steel industry
Industry Median: 1.67
vs KIROY: 2.68
Kumba Iron Ore Current Ratio Historical Data
The historical data trend for Kumba Iron Ore'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 Kumba Iron Ore's Current Ratio
For the Steel subindustry, Kumba Iron Ore'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.
Kumba Iron Ore's Current Ratio Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Kumba Iron Ore's Current Ratio distribution charts can be found below:
* The bar in red indicates where Kumba Iron Ore's Current Ratio falls into.
Kumba Iron Ore 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.
Kumba Iron Ore's Current Ratio for the fiscal year that ended in Dec. 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.
Kumba Iron Ore (OTCPK:KIROY) 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.
Kumba Iron Ore Current Ratio Related Terms
Thank you for viewing the detailed overview of Kumba Iron Ore's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Kumba Iron Ore (Kumba Iron Ore) Business Description
Kumba Iron Ore Ltd is engaged in the exploration, mining, processing blending and sale of iron ore to the global steel industry. The company primarily operates in South Africa, with mining operations in the Northern Cape and Limpopo provinces, as well as a head office in Centurion, Gauteng, and a port operation in Saldanha Bay, Western Cape. The company's flagship asset is the Sishen mine, which it holds a majority stake, located near the town of Kathu in the Northern Cape Province. The Sishen mine is an opencast mine and produces the bulk of the group's iron ore, most of which is exported. It also holds interest in Kolomela mine.
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