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. Planar Systems's current ratio for the quarter that ended in Jun. 2015 was 2.56.
Planar Systems has a current ratio of 2.56. It generally indicates good short-term financial strength.
The historical rank and industry rank for Planar Systems's Current Ratio or its related term are showing as below:
FRA:PL4'
s Current Ratio Range Over the Past 10 Years
Min: 1.39 Med: 2.55 Max: 6.04
Current: 2.56
During the past 13 years, Planar Systems's highest Current Ratio was 6.04. The lowest was 1.39. And the median was 2.55.
FRA:PL4's Current Ratio is not ranked
in the Hardware industry.
Industry Median: 2.02
vs FRA:PL4: 2.56
Planar Systems Current Ratio Historical Data
The historical data trend for Planar Systems'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 Planar Systems's Current Ratio
For the Electronic Components subindustry, Planar Systems'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.
Planar Systems's Current Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Planar Systems's Current Ratio distribution charts can be found below:
* The bar in red indicates where Planar Systems's Current Ratio falls into.
Planar Systems 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.
Planar Systems's Current Ratio for the fiscal year that ended in Sep. 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.
Planar Systems (FRA:PL4) 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.
Planar Systems Current Ratio Related Terms
Thank you for viewing the detailed overview of Planar Systems's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Planar Systems Inc was incorporated on April 27, 1983. The Company is a provider of specialty display products, solutions, and services for customers in a number of end-market segments. Products include display components, completed displays, and display solutions and systems based on a variety of flat panel and front- and rear-projection technologies. The Company capitalizes on its strong supply chain, logistics, and distribution relationships to sell a variety of mainly LCD based displays to the United States marketplace. The Company offers High-End Home Display which offers various high-performance home theater front-projection systems, video processing equipment, large-format thin displays, and accessories, that aims at the high-end home market and certain commercial installations The Company employs sales professionals in many countries around the world and sells both directly to end users and through reseller channels.The Company's direct competitors are numerous and diverse. In display systems including AMLCD components sourced from manufacturers, Planar's value-added specialty display products compete against those of NEC, Acer, Viewsonic, Dell and others in the IT market. The Company's operations are subject to environmental and various other regulations in each of the jurisdictions in which it conducts business.
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