Continental CoalASX:CCC Current Ratio is 0.10 as of Jun. 2014, which is 83% below its 10-year median of 0.59. The stock has 4 warning signs investors should review.
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. Continental Coal's current ratio for the quarter that ended in Jun. 2014 was 0.10.
Continental Coal has a current ratio of 0.10. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Continental Coal has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Continental Coal's Current Ratio or its related term are showing as below:
ASX:CCC'
s Current Ratio Range Over the Past 10 Years
Min: 0.1 Med: 0.59 Max: 0.99
Current: 0.1
During the past 4 years, Continental Coal's highest Current Ratio was 0.99. The lowest was 0.10. And the median was 0.59.
ASX:CCC's Current Ratio is not ranked
in the Steel industry.
Industry Median: 1.63
vs ASX:CCC: 0.10
Continental Coal (ASX:CCC) 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.
Continental Coal Current Ratio Related Terms
Continental Coal Current Ratio Historical Data
* Premium members only.
The historical data trend for Continental Coal'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.
Continental Coal Current Ratio Competitor Comparison
For the Coking Coal subindustry, Continental Coal'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.
Continental Coal Current Ratio vs Steel Industry
For the Steel industry and Basic Materials sector, Continental Coal's Current Ratio distribution charts can be found below:
* The bar in red indicates where Continental Coal's Current Ratio falls into.
* 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.
Continental Coal (ASX:CCC) has a Current Ratio of 0.10 as of Jun. 2014. This is 83% below median its historical median of 0.59. Over the past decade, Continental Coal's Current Ratio has ranged from 0.10 to 0.99.
Is Continental Coal's Current Ratio too high?
Continental Coal's current Current Ratio of 0.10 is 83% below median its 10-year median of 0.59. Over the past 10 years, this metric has ranged from a low of 0.10 to a high of 0.99. The Steel industry median Current Ratio is 1.63. Continental Coal's value of 0.10 is 93.9% below this industry median.
How does Continental Coal's Current Ratio compare to competitors?
Continental Coal's Current Ratio of 0.10 can be compared against companies in the Steel industry. The industry median Current Ratio is 1.63. Continental Coal's value of 0.10 is 93.9% below this benchmark. Historically, Continental Coal's own Current Ratio has ranged from 0.10 to 0.99 over the past decade. While the company's 10-year median is 0.59 vs. the industry median of 1.63, Continental Coal has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Steel company?
The median Current Ratio among Steel companies is 1.63, based on 638 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Continental Coal's current Current Ratio of 0.10 is 93.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Steel industry, the median Current Ratio is 1.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Continental Coal's current Current Ratio is 0.10, which is 83% below median its own 10-year median of 0.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Continental Coal stock overvalued right now?
Continental Coal (ASX:CCC) has a current Current Ratio of 0.10. The current Current Ratio is 0.10, which is 83% below median its 10-year median of 0.59 and 93.9% below the Steel industry median of 1.63. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Continental Coal (ASX:CCC), the current Current Ratio is 0.10 as of Jun. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Continental Coal Ltd is a coal exploration and development company. It is engaged in producing, development and exploration of coal in its projects located in South Africa's coal fields. Its three main operating mines are Vlakvarkfontein, Ferreira and Penumbra mine. Its development projects include De Wittekrans development project; and exploration projects, such as Vaalbank, Leiden and Knapdaar in South Africa, as well as Kweneng and Serowe exploration projects in Botswana.
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