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. Capstone's current ratio for the quarter that ended in Dec. 2024 was 0.20.
Capstone has a current ratio of 0.20. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Capstone 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 Capstone's Current Ratio or its related term are showing as below:
CAPC'
s Current Ratio Range Over the Past 10 Years
Min: 0.02 Med: 2.11 Max: 7.52
Current: 0.2
During the past 13 years, Capstone's highest Current Ratio was 7.52. The lowest was 0.02. And the median was 2.11.
CAPC's Current Ratio is ranked worse than 98.91% of 3023
companies
in the Industrial Products industry
Industry Median: 1.99
vs CAPC: 0.20
Capstone Current Ratio Historical Data
The historical data trend for Capstone'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.
Competitive Comparison of Capstone's Current Ratio
For the Electrical Equipment & Parts subindustry, Capstone'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.
Capstone's Current Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Capstone's Current Ratio distribution charts can be found below:
* The bar in red indicates where Capstone'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.
Capstone (OTCPK:CAPC) 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.
Capstone Current Ratio Related Terms
Thank you for viewing the detailed overview of Capstone's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Capstone Companies Inc is a United States-based holding company. It is engaged in the business of developing, marketing, and selling specialty LED lighting solutions and consumer products through national and regional retailers and distributors in North America. It operates in product categories, including LED Puck Lights, LED Undercabinet Light Bars, LED Motion Sensor Lights, Wireless Remote-Control Outlets, Wireless Remote-Controlled LED Accent Lights, Wardrobe/Fitness Mirror, Standard Rectangular, and Others. It generates the majority of its revenue from the sale of Smart Mirror Products in the United States.
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