Koninklijke Ahold Delhaize NV has a current ratio of 0.79. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Koninklijke Ahold Delhaize NV 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 Koninklijke Ahold Delhaize NV's Current Ratio or its related term are showing as below:
CHIX:ADa'
s Current Ratio Range Over the Past 10 Years
Min: 0.68 Med: 0.81 Max: 1.05
Current: 0.79
During the past 13 years, Koninklijke Ahold Delhaize NV's highest Current Ratio was 1.05. The lowest was 0.68. And the median was 0.81.
CHIX:ADa's Current Ratio is ranked worse than 81.82% of 319
companies
in the Retail - Defensive industry
Industry Median: 1.26
vs CHIX:ADa: 0.79
Koninklijke Ahold Delhaize NV 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.
Competitive Comparison of Koninklijke Ahold Delhaize NV's Current Ratio
For the Grocery Stores subindustry, Koninklijke Ahold Delhaize NV'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.
Koninklijke Ahold Delhaize NV's Current Ratio Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Koninklijke Ahold Delhaize NV's Current Ratio distribution charts can be found below:
* The bar in red indicates where Koninklijke Ahold Delhaize NV's Current Ratio falls into.
Koninklijke Ahold Delhaize NV 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.
Koninklijke Ahold Delhaize NV (CHIX:ADa) 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.
Koninklijke Ahold Delhaize NV Current Ratio Related Terms
Thank you for viewing the detailed overview of Koninklijke Ahold Delhaize NV's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Koninklijke Ahold Delhaize NV Business Description
Ahold Delhaize is the product of the July 2016 merger between Netherlands-based Ahold and Belgium's Delhaize, forming the fourth-largest grocer in the US and a top player in many parts of Europe. The US is the largest market, accounting for over 60% of group sales, with Ahold Delhaize the leading grocer on the Eastern Seaboard. The US store network stretches from Maine to Georgia and includes such banners as Stop & Shop, The Giant Company, Giant Food, Food Lion, and Hannaford. The Netherlands, Belgium, and Central and SouthEastern Europe, including the Czech Republic, Greece, Romania, and Serbia, account for slightly less than 40% of sales. Ahold Delhaize holds the number-one and number-two positions in almost all of these countries.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CHIX:ADA has been successfully added to your 