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. Affinity Education Group's current ratio for the quarter that ended in Jun. 2015 was 0.55.
Affinity Education Group has a current ratio of 0.55. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Affinity Education 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 Affinity Education Group's Current Ratio or its related term are showing as below:
FRA:A0J'
s Current Ratio Range Over the Past 10 Years
Min: 0.5 Med: 0.55 Max: 2.3
Current: 0.55
During the past 1 years, Affinity Education Group's highest Current Ratio was 2.30. The lowest was 0.50. And the median was 0.55.
FRA:A0J's Current Ratio is not ranked
in the Personal Services industry.
Industry Median: 1.14
vs FRA:A0J: 0.55
Affinity Education 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.
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Affinity Education Group Current Ratio Chart
Affinity Education Group Annual Data
Trend
Dec14
Current Ratio
0.50
Affinity Education Group Semi-Annual Data
Jun14
Dec14
Jun15
Current Ratio
2.30
0.50
0.55
Competitive Comparison of Affinity Education Group's Current Ratio
For the Personal Services subindustry, Affinity Education 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.
Affinity Education Group's Current Ratio Distribution in the Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, Affinity Education Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Affinity Education Group's Current Ratio falls into.
Affinity Education Group 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.
Affinity Education Group's Current Ratio for the fiscal year that ended in Dec. 2014 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.
Affinity Education Group (FRA:A0J) 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.
Affinity Education Group Current Ratio Related Terms
Thank you for viewing the detailed overview of Affinity Education Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Affinity Education Group (FRA:A0J) Business Description
Affinity Education Group Ltd was incorporated on 21st May, 2013. The Company provides education and care to children aged six weeks to 12 years. Provision of these services includes long day care, before and after school care and occasional care. Its segments include Long day care centers, Outside school-hours care, Family day care, and Occasional care. Long day care centers are set up to primarily offer care to below school age children with working parents. The care can be both full-and-part time. Outside school-hours care provides before and after school short-term care to children of primary school age. Vacation care is also considered part of this segment, providing child care services to parents during school holidays. Family day care is the only area of child care approved under the National Quality Framework that takes place outside of a center, with care provided in the home of an approved educator. This type of care can be all day, part time, occasional or outside school hours. Occasional care offers child care services for children on a casual basis. Centers offering occasional services are primarily set up to provide flexibility to parents with irregular working hours or short-term needs. As with family day care, occasional care is a capped program.
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