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. Balamara Resources's current ratio for the quarter that ended in Dec. 2014 was 1.46.
Balamara Resources has a current ratio of 1.46. It generally indicates good short-term financial strength.
The historical rank and industry rank for Balamara Resources's Current Ratio or its related term are showing as below:
FRA:CDU's Current Ratio is not ranked *
in the Metals & Mining industry.
Industry Median: 2.015 * Ranked among companies with meaningful Current Ratio only.
Balamara Resources Current Ratio Historical Data
The historical data trend for Balamara Resources'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 Balamara Resources's Current Ratio
For the Other Industrial Metals & Mining subindustry, Balamara Resources'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.
Balamara Resources's Current Ratio Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Balamara Resources's Current Ratio distribution charts can be found below:
* The bar in red indicates where Balamara Resources's Current Ratio falls into.
Balamara Resources 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.
Balamara Resources's Current Ratio for the fiscal year that ended in Jun. 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.
Balamara Resources (FRA:CDU) 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.
Balamara Resources Current Ratio Related Terms
Thank you for viewing the detailed overview of Balamara Resources's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Balamara Resources Ltd formerly known as Sultan Corporation Limited was incorporated in New South Wales on 16 August 1993 under the name of Asia-Pacific Minerals NL and on 21 November 1993 it changed its name to Caledonian Pacific Minerals NL. On 13 May, 2000 the Company changed its name again to Quadtel NL. The name of the Company was changed once more to Wytomic Limited on 17 February, 2005. The Company is engaged in exploration of mineral resources and reserves, primarily in Central Europe. It acquires assets at low cost with significant upside potential and develops them to a pre-production status. The Company's projects are located in Poland, Montenegro, Bosnia and NSW Australia. It operates in three reportable segments: Exploration Balkans region, Exploration Poland, and Exploration Australia.
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