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. Ocean Power Technologies's current ratio for the quarter that ended in Jan. 2024 was 2.49.
Ocean Power Technologies has a current ratio of 2.49. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ocean Power Technologies's Current Ratio or its related term are showing as below:
OPTT'
s Current Ratio Range Over the Past 10 Years
Min: 1.27 Med: 4.69 Max: 31.43
Current: 2.49
During the past 13 years, Ocean Power Technologies's highest Current Ratio was 31.43. The lowest was 1.27. And the median was 4.69.
OPTT's Current Ratio is ranked better than 63.98% of 3023
companies
in the Industrial Products industry
Industry Median: 1.98
vs OPTT: 2.49
Ocean Power Technologies Current Ratio Historical Data
* 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 Ocean Power Technologies's Current Ratio
For the Specialty Industrial Machinery subindustry, Ocean Power 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.
Ocean Power Technologies's Current Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Ocean Power Technologies's Current Ratio distribution charts can be found below:
* The bar in red indicates where Ocean Power Technologies's Current Ratio falls into.
Ocean Power 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.
Ocean Power Technologies's Current Ratio for the fiscal year that ended in Apr. 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.
Ocean Power Technologies (AMEX:OPTT) 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.
Ocean Power Technologies Current Ratio Related Terms
Thank you for viewing the detailed overview of Ocean Power Technologies's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ocean Power Technologies (Ocean Power Technologies) Business Description
Ocean Power Technologies Inc provides intelligent maritime solutions and services that enable safer, cleaner, and more productive ocean operations for the defense and security, oil and gas, science and research, and offshore wind markets. It provides ocean data collection and reporting, marine power, offshore communications, and Maritime Domain Awareness System (MDAS) products, integrated solutions, and consulting services. The company offers its products and services to a wide range of customers, including those in government and offshore energy, oil and gas, construction, wind power, and other industries. The company has operations in North and South America, Europe, Asia and Australia.
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