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. Fairway Group Holdings's current ratio for the quarter that ended in Dec. 2015 was 1.13.
Fairway Group Holdings has a current ratio of 1.13. It generally indicates good short-term financial strength.
The historical rank and industry rank for Fairway Group Holdings's Current Ratio or its related term are showing as below:
FRA:FGWA'
s Current Ratio Range Over the Past 10 Years
Min: 1 Med: 1.3 Max: 2.17
Current: 1.13
During the past 6 years, Fairway Group Holdings's highest Current Ratio was 2.17. The lowest was 1.00. And the median was 1.30.
FRA:FGWA's Current Ratio is not ranked
in the Retail - Defensive industry.
Industry Median: 1.32
vs FRA:FGWA: 1.13
Fairway Group Holdings (FRA:FGWA) 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.
Fairway Group Holdings Current Ratio Related Terms
Fairway Group Holdings 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.
For the Grocery Stores subindustry, Fairway Group Holdings'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.
Fairway Group Holdings Current Ratio vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Fairway Group Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Fairway Group Holdings'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.
Fairway Group Holdings (FRA:FGWA) has a Current Ratio of 1.13 as of Dec. 2015. This is 13% below median its historical median of 1.30. Over the past decade, Fairway Group Holdings' Current Ratio has ranged from 1.00 to 2.17.
Is Fairway Group Holdings' Current Ratio too high?
Fairway Group Holdings' current Current Ratio of 1.13 is 13% below median its 10-year median of 1.30. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 2.17. The Retail - Defensive industry median Current Ratio is 1.32. Fairway Group Holdings' value of 1.13 is 14.4% below this industry median.
How does Fairway Group Holdings' Current Ratio compare to IFMK?
Fairway Group Holdings' Current Ratio of 1.13 can be compared against companies in the Retail - Defensive industry. The industry median Current Ratio is 1.32. Fairway Group Holdings' value of 1.13 is 14.4% below this benchmark. Historically, Fairway Group Holdings' own Current Ratio has ranged from 1.00 to 2.17 over the past decade. While the company's 10-year median is 1.30 vs. the industry median of 1.32, Fairway Group Holdings has consistently been below the industry average. 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 Retail - Defensive company?
The median Current Ratio among Retail - Defensive companies is 1.32, based on 310 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. Fairway Group Holdings's current Current Ratio of 1.13 is 14.4% 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 Retail - Defensive industry, the median Current Ratio is 1.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fairway Group Holdings's current Current Ratio is 1.13, which is 13% below median its own 10-year median of 1.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fairway Group Holdings stock overvalued right now?
Fairway Group Holdings (FRA:FGWA) has a current Current Ratio of 1.13. The current Current Ratio is 1.13, which is 13% below median its 10-year median of 1.30 and 14.4% below the Retail - Defensive industry median of 1.32. 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 Fairway Group Holdings (FRA:FGWA), the current Current Ratio is 1.13 as of Dec. 2015. 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.
Fairway Group Holdings Corp along with its subsidiaries operates in the retail food industry. The company sells fresh, natural and organic products, prepared foods and hard to find specialty and gourmet offerings, along with a full assortment of conventional groceries. Its perishable product categories, which include producing, natural and organic, deli, specialty, cheese, butcher, seafood, bakery, coffee and kosher foods. The non-perishable product categories consist of conventional groceries as well as specialty foods.
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