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. Wesco Aircraft Holdings's current ratio for the quarter that ended in Sep. 2019 was 3.62.
Wesco Aircraft Holdings has a current ratio of 3.62. 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 Wesco Aircraft Holdings's Current Ratio or its related term are showing as below:
WAIR's Current Ratio is not ranked *
in the Industrial Distribution industry.
Industry Median: 1.9 * Ranked among companies with meaningful Current Ratio only.
Wesco Aircraft Holdings 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 Wesco Aircraft Holdings's Current Ratio
For the Industrial Distribution subindustry, Wesco Aircraft Holdings'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.
Wesco Aircraft Holdings's Current Ratio Distribution in the Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Wesco Aircraft Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Wesco Aircraft Holdings's Current Ratio falls into.
Wesco Aircraft Holdings 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.
Wesco Aircraft Holdings's Current Ratio for the fiscal year that ended in Sep. 2019 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.
Wesco Aircraft Holdings (NYSE:WAIR) 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.
Wesco Aircraft Holdings Current Ratio Related Terms
Thank you for viewing the detailed overview of Wesco Aircraft Holdings's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Wesco Aircraft Holdings (Wesco Aircraft Holdings) Business Description
Wesco Aircraft Holdings Inc is a distributor of supply-management services to the aerospace industry. The services include: distribution, management of supplier relationships, quality assurance, kitting, just-in-time delivery, and point-of-use inventory management. The company serves commercial aerospace, energy, general aviation, pharmaceuticals, airlines, and maintenance and repair companies, and the defense sector. The majority of its revenue stream is based on long-term contracts. The largest customer by revenue can be categorised as original equipment manufacturers and contractors. Geographically, North America makes up the lion's share of Wesco Aircraft's generated sales.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
WAIR has been successfully added to your 