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. Landi Renzo SpA's current ratio for the quarter that ended in Sep. 2024 was 1.17.
Landi Renzo SpA has a current ratio of 1.17. It generally indicates good short-term financial strength.
The historical rank and industry rank for Landi Renzo SpA's Current Ratio or its related term are showing as below:
FRA:ARQ0's Current Ratio is not ranked *
in the Vehicles & Parts industry.
Industry Median: 1.53 * Ranked among companies with meaningful Current Ratio only.
Landi Renzo SpA (FRA:ARQ0) 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.
Landi Renzo SpA Current Ratio Related Terms
Landi Renzo SpA Current Ratio Historical Data
* Premium members only.
The historical data trend for Landi Renzo SpA'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.
FRA:ARQ0 vs ORLY, AZO, GPC: Current Ratio Comparison
For the Auto Parts subindustry, Landi Renzo SpA'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.
Landi Renzo SpA Current Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Landi Renzo SpA's Current Ratio distribution charts can be found below:
* The bar in red indicates where Landi Renzo SpA'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.
Landi Renzo SpA (FRA:ARQ0) has a Current Ratio of 1.17 as of Sep. 2024.
Is Landi Renzo SpA's Current Ratio too high?
Landi Renzo SpA's current Current Ratio is 1.17. The Vehicles & Parts industry median Current Ratio is 1.53. Landi Renzo SpA's value of 1.17 is 23.5% below this industry median. Overall, Landi Renzo SpA has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Landi Renzo SpA's Current Ratio compare to ORLY and AZO?
Landi Renzo SpA's Current Ratio of 1.17 can be compared against companies in the Vehicles & Parts industry. The industry median Current Ratio is 1.53. Landi Renzo SpA's value of 1.17 is 23.5% below this benchmark. 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 Vehicles & Parts company?
The median Current Ratio among Vehicles & Parts companies is 1.53, based on 1,336 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. Landi Renzo SpA's current Current Ratio of 1.17 is 23.5% 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 Vehicles & Parts industry, the median Current Ratio is 1.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Landi Renzo SpA's current Current Ratio is 1.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Landi Renzo SpA stock overvalued right now?
Landi Renzo SpA (FRA:ARQ0) has a current Current Ratio of 1.17. The current Current Ratio is 1.17 and 23.5% below the Vehicles & Parts industry median of 1.53. Landi Renzo SpA's overall GF Score™ is 4/100. 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 Landi Renzo SpA (FRA:ARQ0), the current Current Ratio is 1.17 as of Sep. 2024. 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.
Landi Renzo SpA is engaged in the automotive fuel supply systems sector. The company mainly designs, manufactures, and sells liquefied petroleum gas and compressed natural gas fuel supply systems for the automotive sector. In addition, it also manufactures compressors for fuel stations, and audio and alarm systems. The group sells its products to car manufacturers, independent retailers, and importers. It has two operating segments which include the Green Transportation segment, and the Clean Tech Solutions segment. The Green Transportation segment generates a majority of its revenue which is designed, manufactured, and sold through the OEM and After Market channels of mechanical and electronic systems and components for the use of automotive gas.
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