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. Ruckus Wireless's current ratio for the quarter that ended in Mar. 2016 was 4.15.
Ruckus Wireless has a current ratio of 4.15. 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 Ruckus Wireless's Current Ratio or its related term are showing as below:
RKUS's Current Ratio is not ranked *
in the Hardware industry.
Industry Median: 2.04 * Ranked among companies with meaningful Current Ratio only.
Ruckus Wireless Current Ratio Historical Data
The historical data trend for Ruckus Wireless'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 Ruckus Wireless's Current Ratio
For the Computer Hardware subindustry, Ruckus Wireless'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.
Ruckus Wireless's Current Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Ruckus Wireless's Current Ratio distribution charts can be found below:
* The bar in red indicates where Ruckus Wireless's Current Ratio falls into.
Ruckus Wireless 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.
Ruckus Wireless'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.
Ruckus Wireless (NYSE:RKUS) 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.
Ruckus Wireless Current Ratio Related Terms
Thank you for viewing the detailed overview of Ruckus Wireless's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ruckus Wireless (Ruckus Wireless) Business Description
Ruckus Wireless Inc., was incorporated in 2002 in Delaware as Sceos Technologies, Inc. and subsequently changed its name to Video54 Technologies, Inc. and then to Ruckus Wireless, Inc. It effectively commenced operations on June 1, 2004, when a new board of directors was appointed and senior management was hired. The Company is a provider of carrier-class Wi-Fi solutions. Its solutions are used by service providers and enterprises to solve network capacity and coverage challenges associated with the rapidly increasing traffic and number of users on wireless networks. Its Smart Wi-Fi solutions offer carriers enhanced reliability, consistent performance, extended range and massive scalability. Its product portfolio comprises of gateways, controllers and access points. These products incorporate Company's proprietary technologies, including Smart Radio, Smart QoS, Smart Mesh, SmartCell and Smart Scaling, to enable high performance in a variety of challenging operating conditions faced by service providers and enterprises. The Company sells its products to service providers and enterprises globally and has sold its products to approximately 18,700 end-customers worldwide. It sells to enterprises through a worldwide network of more than 6,000 value-added resellers and distributors. The Company's enterprise end-customers are mid-sized organizations in a variety of industries, including hospitality, education, healthcare, warehousing and logistics, corporate enterprise, retail, state and local government and public venues, such as stadiums, convention centers, airports and major outdoor public areas. It also sells directly and indirectly to a range of service providers, including mobile operators, cable companies, wholesale operators and fixed-line carriers. The Company has approximately 55 service provider end-customers, including Bright House Networks, The Cloud (a BSkyB Company), KDDI, Tikona Digital Networks, Time Warner Cable and Towerstream.
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