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. Delhaize Group's current ratio for the quarter that ended in Mar. 2016 was 1.24.
Delhaize Group has a current ratio of 1.24. It generally indicates good short-term financial strength.
The historical rank and industry rank for Delhaize Group's Current Ratio or its related term are showing as below:
DEG's Current Ratio is not ranked *
in the Retail - Defensive industry.
Industry Median: 1.3 * Ranked among companies with meaningful Current Ratio only.
Delhaize Group Current Ratio Historical Data
The historical data trend for Delhaize Group'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 Delhaize Group's Current Ratio
For the Grocery Stores subindustry, Delhaize Group'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.
Delhaize Group's Current Ratio Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Delhaize Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Delhaize Group's Current Ratio falls into.
Delhaize Group 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.
Delhaize Group's Current Ratio for the fiscal year that ended in Dec. 2015 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.
Delhaize Group (NYSE:DEG) 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.
Delhaize Group Current Ratio Related Terms
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Delhaize Group (Delhaize Group) Business Description
Delhaize Group SA was founded in Belgium in 1867. It operates food supermarkets. Its conducts its retail operations through its businesses in the United States; Belgium and the Grand Duchy of Luxembourg, collectively as Delhaize Belgium; Greece, Romania and Serbia, collectively as Southeastern Europe; and Indonesia. Its store network also includes other store formats such as proximity, cash and carry and specialty stores. Its competitors include international, national, regional and local supermarket chains, supercenters, independent grocery stores, specialty food stores, warehouse club stores, retail drug chains, convenience stores, membership clubs, general merchandisers, discount retailers and restaurants. Food retail chains generally compete on the basis of location, quality of products, service, price, product variety, store condition and e-commerce offer. The Company's brands include Delhaize, Taste of Inspirations, 365, Care, Delhaize Eco and Delhaize Bio.
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