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. Defense Metals's current ratio for the quarter that ended in Sep. 2024 was 0.42.
Defense Metals has a current ratio of 0.42. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Defense Metals 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 Defense Metals's Current Ratio or its related term are showing as below:
DFMTF'
s Current Ratio Range Over the Past 10 Years
Min: 0.43 Med: 10.44 Max: 190
Current: 0.43
During the past 7 years, Defense Metals's highest Current Ratio was 190.00. The lowest was 0.43. And the median was 10.44.
DFMTF's Current Ratio is ranked worse than 78.76% of 2655
companies
in the Metals & Mining industry
Industry Median: 1.83
vs DFMTF: 0.43
Defense Metals Current Ratio Historical Data
The historical data trend for Defense Metals'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 Defense Metals's Current Ratio
For the Other Industrial Metals & Mining subindustry, Defense Metals'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.
Defense Metals's Current Ratio Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Defense Metals's Current Ratio distribution charts can be found below:
* The bar in red indicates where Defense Metals's Current Ratio falls into.
Defense Metals 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.
Defense Metals's Current Ratio for the fiscal year that ended in Mar. 2023 is calculated as
* 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.
Defense Metals (OTCPK:DFMTF) 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.
Defense Metals Current Ratio Related Terms
Thank you for viewing the detailed overview of Defense Metals's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Defense Metals Corp is a mineral exploration company focused on metals and elements commonly used in the EV market, military, national security, and "GREEN" energy technologies, such as high-strength alloys and rare earth magnets. operates in one business segment, being the exploration, development, and evaluation of the Wicheeda Project in British Columbia, Canada. It holds a portfolio of one hundred percent of the one thousand seven hundred eight hectares of Rare Earth Wicheeda Property in British Columbia, Canada. The mineral deposits are commonly used in the electric power market, defense industry, national security sector, and in the production of green energy technologies.
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