BGEM (Blue Gem Enterprise) Current Ratio: 2.62 (As of Aug. 2010)


What is Blue Gem Enterprise Current Ratio?

Blue Gem Enterprise BGEM -98.75% Current Ratio is 2.62 as of Aug. 2010.

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. Blue Gem Enterprise's current ratio for the quarter that ended in Aug. 2010 was 2.62.

Blue Gem Enterprise has a current ratio of 2.62. It generally indicates good short-term financial strength.

The historical rank and industry rank for Blue Gem Enterprise's Current Ratio or its related term are showing as below:

BGEM's Current Ratio is not ranked *
in the Beverages - Non-Alcoholic industry.
Industry Median: 1.785
* Ranked among companies with meaningful Current Ratio only.

Blue Gem Enterprise  (OTCPK:BGEM) 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.

Blue Gem Enterprise Current Ratio Related Terms

Blue Gem Enterprise Current Ratio Historical Data

* Premium members only.

The historical data trend for Blue Gem Enterprise'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.

Blue Gem Enterprise Current Ratio Chart

Blue Gem Enterprise Annual Data
Trend May08 May09 May10
Current Ratio
0.00 0.00 1.64

Blue Gem Enterprise Quarterly Data
Aug07 Feb08 May08 Aug08 Nov08 Feb09 May09 Aug09 Nov09 Feb10 May10 Aug10
Current Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 1.64 2.62

BGEM vs BEVS, MOJO, LBIX: Current Ratio Comparison

For the Beverages - Non-Alcoholic subindustry, Blue Gem Enterprise'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.

Blue Gem Enterprise Current Ratio vs Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Blue Gem Enterprise's Current Ratio distribution charts can be found below:

* The bar in red indicates where Blue Gem Enterprise's Current Ratio falls into.


Blue Gem Enterprise 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.

Blue Gem Enterprise's Current Ratio for the fiscal year that ended in May. 2010 is calculated as

Current Ratio (A: May. 2010 )=Total Current Assets (A: May. 2010 )/Total Current Liabilities (A: May. 2010 )
=0.261/0.159
=1.64

Blue Gem Enterprise's Current Ratio for the quarter that ended in Aug. 2010 is calculated as

Current Ratio (Q: Aug. 2010 )=Total Current Assets (Q: Aug. 2010 )/Total Current Liabilities (Q: Aug. 2010 )
=1.114/0.426
=2.62

* 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.

Frequently Asked Questions Learn more about Current Ratio →
What does a Current Ratio of 2.62 mean?
Blue Gem Enterprise (BGEM) has a Current Ratio of 2.62 as of Aug. 2010.
Is Blue Gem Enterprise's Current Ratio too high?
Blue Gem Enterprise's current Current Ratio is 2.62. The Beverages - Non-Alcoholic industry median Current Ratio is 1.79. Blue Gem Enterprise's value of 2.62 is 46.8% above this industry median.
How does Blue Gem Enterprise's Current Ratio compare to BEVS and MOJO?
Blue Gem Enterprise's Current Ratio of 2.62 can be compared against companies in the Beverages - Non-Alcoholic industry. The industry median Current Ratio is 1.79. Blue Gem Enterprise's value of 2.62 is 46.8% above this benchmark. 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 Beverages - Non-Alcoholic company?
The median Current Ratio among Beverages - Non-Alcoholic companies is 1.79, based on 118 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. Blue Gem Enterprise's current Current Ratio of 2.62 is 46.8% above 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 Beverages - Non-Alcoholic industry, the median Current Ratio is 1.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Blue Gem Enterprise's current Current Ratio is 2.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Blue Gem Enterprise stock overvalued right now?
Blue Gem Enterprise (BGEM) has a current Current Ratio of 2.62. The current Current Ratio is 2.62 and 46.8% above the Beverages - Non-Alcoholic industry median of 1.79. 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 Blue Gem Enterprise (BGEM), the current Current Ratio is 2.62 as of Aug. 2010. 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.

Blue Gem Enterprise Business Description

Address 12805 N. W. 42 Avenue, Opa-locka, FL, USA, 33054
Blue Gem Enterprise focuses on operating as a full-service direct store beverage distribution company. The company expects to manage and distribute select allied brands with beverage manufacturers. It is competing in all areas of the non-alcoholic beverage industry including; ice teas, juices, waters, shots, carbonated soft drinks, and more.