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. Athlon Energy's current ratio for the quarter that ended in Sep. 2014 was 0.56.
Athlon Energy has a current ratio of 0.56. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Athlon Energy 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 Athlon Energy's Current Ratio or its related term are showing as below:
FRA:28A'
s Current Ratio Range Over the Past 10 Years
Min: 0.47 Med: 0.65 Max: 1.8
Current: 0.56
During the past 3 years, Athlon Energy's highest Current Ratio was 1.80. The lowest was 0.47. And the median was 0.65.
FRA:28A's Current Ratio is not ranked
in the Oil & Gas industry.
Industry Median: 1.33
vs FRA:28A: 0.56
Athlon Energy Current Ratio Historical Data
The historical data trend for Athlon Energy'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 Athlon Energy's Current Ratio
For the Oil & Gas E&P subindustry, Athlon Energy'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.
Athlon Energy's Current Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Athlon Energy's Current Ratio distribution charts can be found below:
* The bar in red indicates where Athlon Energy's Current Ratio falls into.
Athlon Energy 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.
Athlon Energy's Current Ratio for the fiscal year that ended in Dec. 2013 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.
Athlon Energy (FRA:28A) 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.
Athlon Energy Current Ratio Related Terms
Thank you for viewing the detailed overview of Athlon Energy's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Athlon Energy Inc was founded in August 2010 and formed on April 1, 2013 as a Delaware corporation. The Company is an independent exploration and production company engaged in the acquisition, development, and exploitation of unconventional oil and liquids-rich natural gas reserves in the Permian Basin. The Permian Basin spans portions of Texas and New Mexico and is composed of three primary sub-basins: the Delaware Basin, the Central Basin Platform, and the Midland Basin. All of the properties are located in the Midland Basin. The Company's drilling activity is primarily engaged in the low-risk vertical development of stacked pay zones, including the Clearfork, Spraberry, Wolfcamp, Cline, Strawn, Atoka, and Mississippian formations, referred to as the Wolfberry play, and horizontal development of the Wolfcamp. As of December 31, 2013, it had identified 2,232 gross vertical drilling locations on 40-acre spacing and an additional 2,616 gross vertical drilling locations on 20-acre spacing. Only 659 gross of these potential vertical drilling locations were booked as proved undeveloped reserves. As of December 31, 2013, it had also identified 1,065 gross horizontal drilling locations targeting Wolfcamp A, Wolfcamp B, Wolfcamp C, and Cline intervals, which comprise 327 gross, 362 gross, 136 gross, and 240 gross locations, respectively. Its acreage position was 127,840 gross acres at December 31, 2013. As of December 31, 2013, it had 127.3 MMBOE of proved reserves, comprised of 71.2 MMBbls of oil, 30.7 MMBbls of NGLs, and 152.2 Bcf of natural gas. The Company's facilities located at well locations include field gathering systems, storage tank batteries, saltwater disposal systems, oil/gas/water separation equipment, and pumping units. It owns 10 saltwater disposal systems with over 45,700 barrels of water per day capacity and access to over 144 fresh water supply wells throughout its acreage.
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