Diamond S Shipping GroupDSG Current Ratio is 0.66 as of Mar. 2013, which is 10% above its 10-year median of 0.60. The stock has 1 warning sign investors should review.
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. Diamond S Shipping Group's current ratio for the quarter that ended in Mar. 2013 was 0.66.
Diamond S Shipping Group has a current ratio of 0.66. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Diamond S Shipping Group 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 Diamond S Shipping Group's Current Ratio or its related term are showing as below:
DSG'
s Current Ratio Range Over the Past 10 Years
Min: 0.55 Med: 0.6 Max: 0.66
Current: 0.55
During the past 2 years, Diamond S Shipping Group's highest Current Ratio was 0.66. The lowest was 0.55. And the median was 0.60.
DSG's Current Ratio is not ranked
in the Transportation industry.
Industry Median: 1.47
vs DSG: 0.55
Diamond S Shipping Group (NYSE:DSG) 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.
Diamond S Shipping Group Current Ratio Related Terms
Diamond S Shipping Group 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.
Diamond S Shipping Group Current Ratio Chart
Diamond S Shipping Group Annual Data
Trend
Mar12
Mar13
Current Ratio
0.74
0.66
Diamond S Shipping Group Semi-Annual Data
Mar12
Mar13
Current Ratio
0.74
0.66
DSG vs PRGNF, TEUFF, BSTN: Current Ratio Comparison
For the Marine Shipping subindustry, Diamond S Shipping Group'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.
Diamond S Shipping Group Current Ratio vs Transportation Industry
For the Transportation industry and Industrials sector, Diamond S Shipping Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Diamond S Shipping Group'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.
Diamond S Shipping Group (DSG) has a Current Ratio of 0.66 as of Mar. 2013. This is 10% above median its historical median of 0.60. Over the past decade, Diamond S Shipping Group's Current Ratio has ranged from 0.55 to 0.66.
Is Diamond S Shipping Group's Current Ratio too high?
Diamond S Shipping Group's current Current Ratio of 0.66 is 10% above median its 10-year median of 0.60. Over the past 10 years, this metric has ranged from a low of 0.55 to a high of 0.66. The Transportation industry median Current Ratio is 1.47. Diamond S Shipping Group's value of 0.66 is 55.1% below this industry median.
How does Diamond S Shipping Group's Current Ratio compare to PRGNF and TEUFF?
Diamond S Shipping Group's Current Ratio of 0.66 can be compared against companies in the Transportation industry. The industry median Current Ratio is 1.47. Diamond S Shipping Group's value of 0.66 is 55.1% below this benchmark. Historically, Diamond S Shipping Group's own Current Ratio has ranged from 0.55 to 0.66 over the past decade. While the company's 10-year median is 0.60 vs. the industry median of 1.47, Diamond S Shipping Group has consistently been below the industry average. 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 Transportation company?
The median Current Ratio among Transportation companies is 1.47, based on 1,010 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. Diamond S Shipping Group's current Current Ratio of 0.66 is 55.1% 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 Transportation industry, the median Current Ratio is 1.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diamond S Shipping Group's current Current Ratio is 0.66, which is 10% above median its own 10-year median of 0.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diamond S Shipping Group stock overvalued right now?
Diamond S Shipping Group (DSG) has a current Current Ratio of 0.66. The current Current Ratio is 0.66, which is 10% above median its 10-year median of 0.60 and 55.1% below the Transportation industry median of 1.47. 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 Diamond S Shipping Group (DSG), the current Current Ratio is 0.66 as of Mar. 2013. 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.
Diamond S Shipping Group Inc, is incorporated in Marshall Islands on July 31, 2013. The Company provides seaborne transportation of refined petroleum and other products in the international shipping markets. The Company is the owners and operators of medium range, or MR, product tankers. The Company's fleet currently consists of 33 MR product tankers built at Korean and Japanese shipyards. The Company competes on basis of price, vessel location, size, age and condition of the vessel. The Company is subject to various international conventions, national, state and local laws and regulations in the countries in which its vessels may operate or are registered.
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