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. Hochtief AG's current ratio for the quarter that ended in Dec. 2023 was 1.12.
Hochtief AG has a current ratio of 1.12. It generally indicates good short-term financial strength.
The historical rank and industry rank for Hochtief AG's Current Ratio or its related term are showing as below:
HOCFF'
s Current Ratio Range Over the Past 10 Years
Min: 1 Med: 1.1 Max: 1.35
Current: 1.12
During the past 13 years, Hochtief AG's highest Current Ratio was 1.35. The lowest was 1.00. And the median was 1.10.
HOCFF's Current Ratio is ranked worse than 76.09% of 1677
companies
in the Construction industry
Industry Median: 1.55
vs HOCFF: 1.12
Hochtief AG Current Ratio Historical Data
The historical data trend for Hochtief AG'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 Hochtief AG's Current Ratio
For the Engineering & Construction subindustry, Hochtief AG'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.
Hochtief AG's Current Ratio Distribution in the Construction Industry
For the Construction industry and Industrials sector, Hochtief AG's Current Ratio distribution charts can be found below:
* The bar in red indicates where Hochtief AG's Current Ratio falls into.
Hochtief AG 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.
Hochtief AG'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.
Hochtief AG (OTCPK:HOCFF) 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.
Hochtief AG Current Ratio Related Terms
Thank you for viewing the detailed overview of Hochtief AG's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Hochtief AG develops and constructs building and infrastructure projects. It works on complex projects in transportation, energy, urban infrastructure, and mining markets. It expands transportation networks with roads, bridges, and tunnels, or designs and constructs office buildings, hospitals, and power plants. The company leans on expertise and technical know-how in developing, financing, building, and operating in designated business areas. Also, it will partner with external groups to work on specific components of a project. Hochtief reports operating segments by regional divisions: Americas, Asia Pacific, and Europe. The Americas and the Asia Pacific account for the majority of sales and are where most of the company's assets are located.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HOCFF has been successfully added to your 