Earthworks Entertainment (Earthworks Entertainment) Current Ratio : 0.01 (As of Jun. 2006)

Earthworks Entertainment Current Ratio Chart

Earthworks Entertainment Annual Data
	Trend	Sep96	Sep97	Sep98	Sep99	Sep00	Sep01	Sep02	Sep03	Sep04	Sep05
Current Ratio		Get a 7-Day Free Trial					0.44	0.18	0.15	0.10	0.19

Earthworks Entertainment Quarterly Data
	Sep01	Dec01	Mar02	Jun02	Sep02	Dec02	Mar03	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06
Current Ratio	Get a 7-Day Free Trial															1.23	0.19	0.07	0.02	0.01

Competitive Comparison of Earthworks Entertainment's Current Ratio

For the Entertainment subindustry, Earthworks Entertainment'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.

Earthworks Entertainment's Current Ratio Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Earthworks Entertainment's Current Ratio distribution charts can be found below:

* The bar in red indicates where Earthworks Entertainment's Current Ratio falls into.

Earthworks Entertainment 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.

Earthworks Entertainment's Current Ratio for the fiscal year that ended in Sep. 2005 is calculated as

Earthworks Entertainment's Current Ratio for the quarter that ended in Jun. 2006 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.

Earthworks Entertainment  (OTCPK:EWKS) 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.

Earthworks Entertainment Current Ratio Related Terms

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Earthworks Entertainment (Earthworks Entertainment) Business Description