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. Biomass Secure Power's current ratio for the quarter that ended in Jun. 2010 was 0.15.
Biomass Secure Power has a current ratio of 0.15. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Biomass Secure Power 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 Biomass Secure Power's Current Ratio or its related term are showing as below:
BMSPF's Current Ratio is not ranked *
in the Forest Products industry.
Industry Median: 1.52 * Ranked among companies with meaningful Current Ratio only.
Biomass Secure Power (OTCPK:BMSPF) 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.
Biomass Secure Power Current Ratio Related Terms
Biomass Secure Power Current Ratio Historical Data
* Premium members only.
The historical data trend for Biomass Secure Power'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.
Biomass Secure Power Current Ratio Chart
Biomass Secure Power Annual Data
Trend
Jun04
Jun05
Jun09
Jun10
Current Ratio
0.98
1.08
0.42
0.15
Biomass Secure Power Semi-Annual Data
Jun04
Jun05
Jun09
Jun10
Current Ratio
0.98
1.08
0.42
0.15
Biomass Secure Power Current Ratio Competitor Comparison
For the Lumber & Wood Production subindustry, Biomass Secure Power'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.
Biomass Secure Power Current Ratio vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Biomass Secure Power's Current Ratio distribution charts can be found below:
* The bar in red indicates where Biomass Secure Power'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.
Biomass Secure Power (BMSPF) has a Current Ratio of 0.15 as of Jun. 2010.
Is Biomass Secure Power's Current Ratio too high?
Biomass Secure Power's current Current Ratio is 0.15. The Forest Products industry median Current Ratio is 1.52. Biomass Secure Power's value of 0.15 is 90.1% below this industry median.
How does Biomass Secure Power's Current Ratio compare to competitors?
Biomass Secure Power's Current Ratio of 0.15 can be compared against companies in the Forest Products industry. The industry median Current Ratio is 1.52. Biomass Secure Power's value of 0.15 is 90.1% below 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 Forest Products company?
The median Current Ratio among Forest Products companies is 1.52, based on 289 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. Biomass Secure Power's current Current Ratio of 0.15 is 90.1% 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 Forest Products industry, the median Current Ratio is 1.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Biomass Secure Power's current Current Ratio is 0.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Biomass Secure Power stock overvalued right now?
Biomass Secure Power (BMSPF) has a current Current Ratio of 0.15. The current Current Ratio is 0.15 and 90.1% below the Forest Products industry median of 1.52. 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 Biomass Secure Power (BMSPF), the current Current Ratio is 0.15 as of Jun. 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.
Biomass Secure Power Inc is engaged in the development of a wood pellet plant in Louisiana. The company has two patents that allow it to produce Biocoal with up to 30% more energy per tonne than whitewood pellets. The second patent concerns the briquetting of torrefied chips at high temperature maintaining the adhesive properties of the natural lignin and furans present in the wood fiber. It has developed two revenue streams, Biocoal supply and high carbon product which provides a byproduct that can be used for SAF.
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