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. Willamette Valley Vineyards's current ratio for the quarter that ended in Dec. 2023 was 2.33.
Willamette Valley Vineyards has a current ratio of 2.33. It generally indicates good short-term financial strength.
The historical rank and industry rank for Willamette Valley Vineyards's Current Ratio or its related term are showing as below:
WVVI'
s Current Ratio Range Over the Past 10 Years
Min: 2.33 Med: 4.68 Max: 5.59
Current: 2.33
During the past 13 years, Willamette Valley Vineyards's highest Current Ratio was 5.59. The lowest was 2.33. And the median was 4.68.
WVVI's Current Ratio is ranked better than 62.15% of 214
companies
in the Beverages - Alcoholic industry
Industry Median: 1.705
vs WVVI: 2.33
Willamette Valley Vineyards Current Ratio Historical Data
The historical data trend for Willamette Valley Vineyards'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.
For the Beverages - Wineries & Distilleries subindustry, Willamette Valley Vineyards'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.
Willamette Valley Vineyards Current Ratio Distribution
For the Beverages - Alcoholic industry and Consumer Defensive sector, Willamette Valley Vineyards's Current Ratio distribution charts can be found below:
* The bar in red indicates where Willamette Valley Vineyards's Current Ratio falls into.
Willamette Valley Vineyards 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.
Willamette Valley Vineyards'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.
Willamette Valley Vineyards (NAS:WVVI) 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.
Willamette Valley Vineyards Current Ratio Related Terms
Thank you for viewing the detailed overview of Willamette Valley Vineyards's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Willamette Valley Vineyards (Willamette Valley Vineyards) Business Description
Willamette Valley Vineyards Inc produces and sells premium, super-premium, and ultra-premium wines. The grapes are harvested, fermented, and made into wine at the company's Turner winery, and the wines are sold principally under its Willamette Valley Vineyards label and also under the Griffin Creek, Tualatin Estate, Pambrun, Maison Bleue, Natoma, Metis, and Elton labels. It operates under two operating segments, direct sales and distributor sales. Direct sales include retail sales in its tasting room and remote sites, wine club sales, online sales, on-site events, kitchen and catering sales, and other sales made directly to the consumer without the use of an intermediary. Distributor sales include all sales through a third party where prices are given at a wholesale rate.
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