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. Australian Agricultural Co's current ratio for the quarter that ended in Sep. 2024 was 7.12.
Australian Agricultural Co has a current ratio of 7.12. 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 Australian Agricultural Co's Current Ratio or its related term are showing as below:
ASAGF'
s Current Ratio Range Over the Past 10 Years
Min: 4.28 Med: 6.78 Max: 10.28
Current: 7.12
During the past 13 years, Australian Agricultural Co's highest Current Ratio was 10.28. The lowest was 4.28. And the median was 6.78.
ASAGF's Current Ratio is ranked better than 93.08% of 1923
companies
in the Consumer Packaged Goods industry
Industry Median: 1.69
vs ASAGF: 7.12
Australian Agricultural Co 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 Australian Agricultural Co's Current Ratio
For the Farm Products subindustry, Australian Agricultural Co'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.
Australian Agricultural Co's Current Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Australian Agricultural Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Australian Agricultural Co's Current Ratio falls into.
Australian Agricultural Co 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.
Australian Agricultural Co (OTCPK:ASAGF) 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.
Australian Agricultural Co Current Ratio Related Terms
Thank you for viewing the detailed overview of Australian Agricultural Co's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Australian Agricultural Co Ltd raises cattle in Australia to process and export all over the world. It specializes in grass-fed beef, grain-fed beef, and Japanese-style beef. The company invests in research and technologies to ensure high quality and enhance productivity. The technologies may focus on performance evaluations, feed efficiency, or disease testing. More opportunities for gathering data exist because the cattle are owned throughout the entire supply chain. The company's processing facility works to get the beef out on a timely basis and will turn to third parties in times of shortage. The company distributes the beef by tailoring its route-to-market model to capitalize on regional opportunities.
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