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. Revett Mining Co's current ratio for the quarter that ended in Mar. 2015 was 0.84.
Revett Mining Co has a current ratio of 0.84. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Revett Mining Co 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 Revett Mining Co's Current Ratio or its related term are showing as below:
FRA:RV2's Current Ratio is not ranked *
in the Metals & Mining industry.
Industry Median: 2.1 * Ranked among companies with meaningful Current Ratio only.
Revett Mining Co Current Ratio Historical Data
The historical data trend for Revett Mining Co'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 Revett Mining Co's Current Ratio
For the Other Industrial Metals & Mining subindustry, Revett Mining Co'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.
Revett Mining Co's Current Ratio Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Revett Mining Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Revett Mining Co's Current Ratio falls into.
Revett Mining Co 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.
Revett Mining Co's Current Ratio for the fiscal year that ended in Dec. 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.
Revett Mining Co (FRA:RV2) 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.
Revett Mining Co Current Ratio Related Terms
Thank you for viewing the detailed overview of Revett Mining Co's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Revett Mining Co Inc formerly Revett Minerals Inc., was incorporated in August 2004. The Company is a silver-copper producer. It owns and operates the producing Troy Mine and the development-stage Rock Creek project; both properties are located in northwestern Montana. Its mining properties are Troy and Rock Creek. Troy an is underground silver and copper mine located in Lincoln County, Montana, approximately fifteen miles south of the town of Troy. Rock Creek is a large exploration-stage silver and copper property located in Sanders County, Montana, approximately five miles northeast of Noxon, Montana. The mine operation comprises 24 patented lode-mining claims, 510 unpatented lode-mining claims, approximately 850 acres of fee land and approximately 394 acres of patented claim land. The Company also owns two unpatented claim groups in nearby areas of Sanders County, the Vermillion River and the Sims Creek properties, which comprise approximately 1,660 acres and are located approximately 25 miles southeast of Rock Creek. Limited drilling was conducted by the previous owner of the Vermillion River claim group. Additionally, it also owns approximately 673 acres of fee land that will be used for mitigation as the Rock Creek project is developed. The Company is subject to a variety of federal, state and local statutes, rules and regulations designed to protect the quality of the air and water, and threatened or endangered species in the vicinity of its mining operations.
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