Ambica Agarbathies & Aroma Industries has a current ratio of 0.00. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Ambica Agarbathies & Aroma Industries has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
BOM:532335's Current Ratio is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 1.66 * Ranked among companies with meaningful Current Ratio only.
Ambica Agarbathies & Aroma Industries 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.
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Ambica Agarbathies & Aroma Industries Current Ratio Chart
Competitive Comparison of Ambica Agarbathies & Aroma Industries's Current Ratio
For the Household & Personal Products subindustry, Ambica Agarbathies & Aroma Industries'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.
Ambica Agarbathies & Aroma Industries's Current Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Ambica Agarbathies & Aroma Industries's Current Ratio distribution charts can be found below:
* The bar in red indicates where Ambica Agarbathies & Aroma Industries's Current Ratio falls into.
Ambica Agarbathies & Aroma Industries 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.
Ambica Agarbathies & Aroma Industries (BOM:532335) 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.
Ambica Agarbathies & Aroma Industries Current Ratio Related Terms
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Ambica Agarbathies & Aroma Industries (BOM:532335) Business Description
Ambica Agarbathies & Aroma Industries Ltd is an Indian manufacturer and seller of incense sticks. In addition, it is also involved in the business activities of operating hotels in Chennai and Vishakapatnam, Film production and distribution activities, and wind power generation activities. The operating segments of the company are the Agarbathies division and the Hotel division. The company derives a majority of its revenue from the Agarbathies division segment which involves manufacturing and selling varieties of incense sticks. The products offered by the entity are Durbar Bathi, Fruit (Natural Bathies), Sun Moon (incense sticks), Amrutham (herbal bathies), and Athjisaya Dhoop.
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