Huntington Ingalls Industries has a current ratio of 0.79. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Huntington Ingalls Industries 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 Huntington Ingalls Industries's Current Ratio or its related term are showing as below:
FRA:HI4'
s Current Ratio Range Over the Past 10 Years
Min: 0.79 Med: 1.15 Max: 1.97
Current: 0.79
During the past 13 years, Huntington Ingalls Industries's highest Current Ratio was 1.97. The lowest was 0.79. And the median was 1.15.
FRA:HI4's Current Ratio is ranked worse than 91.46% of 316
companies
in the Aerospace & Defense industry
Industry Median: 1.72
vs FRA:HI4: 0.79
Huntington Ingalls Industries 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.
Competitive Comparison of Huntington Ingalls Industries's Current Ratio
For the Aerospace & Defense subindustry, Huntington Ingalls Industries'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.
Huntington Ingalls Industries's Current Ratio Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Huntington Ingalls Industries's Current Ratio distribution charts can be found below:
* The bar in red indicates where Huntington Ingalls Industries's Current Ratio falls into.
Huntington Ingalls Industries 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.
* 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.
Huntington Ingalls Industries (FRA:HI4) 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.
Huntington Ingalls Industries Current Ratio Related Terms
Thank you for viewing the detailed overview of Huntington Ingalls Industries's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Huntington Ingalls Industries Business Description
Huntington Ingalls Industries is the largest independent military shipbuilder in the US, spun off of Northrop Grumman in 2011. It operates three segments, two of which are storied shipyards: Ingalls produces non-nuclear-powered ships including amphibious landing ships and Arleigh Burke-class destroyers while Newport News produces nuclear-powered ships as the only producer of Gerald Ford-class aircraft carriers and a major subcontractor on Virginia and Columbia-class nuclear submarines. Huntington Ingalls shares production of destroyers and nuclear submarines with General Dynamics' Bath Iron Works and Electric Boat shipyards, respectively. The company's Mission Technologies segment produces uncrewed sea vessels and provides a range of IT and other services to US government agencies.
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