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. Emak SpA's current ratio for the quarter that ended in Sep. 2024 was 2.26.
Emak SpA has a current ratio of 2.26. It generally indicates good short-term financial strength.
The historical rank and industry rank for Emak SpA's Current Ratio or its related term are showing as below:
FRA:EK4'
s Current Ratio Range Over the Past 10 Years
Min: 1.7 Med: 2 Max: 2.27
Current: 2.12
During the past 13 years, Emak SpA's highest Current Ratio was 2.27. The lowest was 1.70. And the median was 2.00.
FRA:EK4's Current Ratio is ranked better than 54.33% of 3024
companies
in the Industrial Products industry
Industry Median: 2
vs FRA:EK4: 2.12
Emak SpA Current Ratio Historical Data
The historical data trend for Emak 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.
Competitive Comparison of Emak SpA's Current Ratio
For the Tools & Accessories subindustry, Emak 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.
Emak SpA's Current Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Emak SpA's Current Ratio distribution charts can be found below:
* The bar in red indicates where Emak 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.
Emak SpA (FRA:EK4) 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.
Emak SpA Current Ratio Related Terms
Thank you for viewing the detailed overview of Emak SpA's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Emak SpA is engaged in the manufacturing and distribution of machines, parts, and accessories for gardening, forestry, agriculture, and industry. It operates through the following segments: Outdoor Power Equipment; Pumps and High Pressure Water Jetting and Components and Accessories. Its products include Oleo-Mac, Efco, Bertolini, Nibbi, Staub, Tecomec, Geoline, Mecline, Comet and HPP. The company, along with its subsidiaries distributes to the Italian market and in other 10 markets such as the United States of America, France, Germany, U.K., Spain, Poland, Ukraine, China, South Africa and Brazil. The raw materials used in the production are copper, steel, aluminum and plastic materials.
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