New England Realty Associates LP has a current ratio of 3.48. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for New England Realty Associates LP's Current Ratio or its related term are showing as below:
NEN'
s Current Ratio Range Over the Past 10 Years
Min: 0.54 Med: 2.18 Max: 4.71
Current: 3.48
During the past 13 years, New England Realty Associates LP's highest Current Ratio was 4.71. The lowest was 0.54. And the median was 2.18.
NEN's Current Ratio is ranked better than 80.12% of 1831
companies
in the Real Estate industry
Industry Median: 1.63
vs NEN: 3.48
New England Realty Associates LP 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.
* Premium members only.
New England Realty Associates LP Current Ratio Chart
Competitive Comparison of New England Realty Associates LP's Current Ratio
For the Real Estate Services subindustry, New England Realty Associates LP'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.
New England Realty Associates LP's Current Ratio Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, New England Realty Associates LP's Current Ratio distribution charts can be found below:
* The bar in red indicates where New England Realty Associates LP's Current Ratio falls into.
New England Realty Associates LP 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.
* 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.
New England Realty Associates LP (AMEX:NEN) 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.
New England Realty Associates LP Current Ratio Related Terms
Thank you for viewing the detailed overview of New England Realty Associates LP's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
New England Realty Associates LP (New England Realty Associates LP) Business Description
New England Realty Associates LP is engaged in the business of acquiring, developing, holding for investment, operating and selling real estate. The Partnership owns and operates various residential apartments, condominium units and commercial properties located in Massachusetts and New Hampshire. The company generates revenue from rental income from residential and commercial properties recognized over the term of the related lease. The long-term goals of the Partnership are to manage, rent and improve its properties and to acquire additional properties with income and capital appreciation potential as suitable opportunities arise.
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