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. Ryland Group's current ratio for the quarter that ended in Jun. 2015 was 4.76.
Ryland Group has a current ratio of 4.76. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Ryland Group's Current Ratio or its related term are showing as below:
FRA:RYG'
s Current Ratio Range Over the Past 10 Years
Min: 1.3 Med: 3.97 Max: 7.57
Current: 4.76
During the past 13 years, Ryland Group's highest Current Ratio was 7.57. The lowest was 1.30. And the median was 3.97.
FRA:RYG's Current Ratio is not ranked
in the Homebuilding & Construction industry.
Industry Median: 2.43
vs FRA:RYG: 4.76
Ryland Group Current Ratio Historical Data
The historical data trend for Ryland Group'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 Ryland Group's Current Ratio
For the Residential Construction subindustry, Ryland Group'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.
Ryland Group's Current Ratio Distribution in the Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Ryland Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Ryland Group's Current Ratio falls into.
Ryland Group 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.
Ryland Group'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.
Ryland Group (FRA:RYG) 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.
Ryland Group Current Ratio Related Terms
Thank you for viewing the detailed overview of Ryland Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ryland Group Inc is a Maryland corporation, which was founded in 1967. It is a homebuilder and a mortgage-finance company. The Company consists of six operating business segments namely four geographically determined homebuilding regions; financial services; and corporate. The Company's homebuilding operations consist of four regional reporting segments namely North, Southeast, Texas and West. The homebuilding segments specialize in the sale and construction of single-family attached and detached housing. Its operations in each of its homebuilding markets might differ due to a number of market-specific factors. These factors include regional economic conditions and job growth; land availability and local land development; consumer preferences; competition from other homebuilders; and home resale activity. The Company's financial services segment includes RMC, RH Insurance Company, Inc. or RHIC, LPS Holdings Corporation and its subsidiaries and Columbia National Risk Retention Group, Inc. or CNRRG. Corporate is a non-operating business segment whose purpose is to support operations. Corporate is responsible for establishing operational policies and internal control standards; implementing strategic initiatives; and monitoring compliance with policies and controls throughout the Company's operations. Corporate acts as an internal source of capital and provides financial, human resource, information technology, insurance, legal, marketing, national purchasing and tax compliance services. In addition, it performs administrative functions associated with a publicly traded entity. Ryland Insurance Services or RIS, a wholly-owned subsidiary of RMC, provides insurance services to the Company's homebuyers. As single-family on-site homebuilders in the United States, it operates in 17 states. The Company's homebuilding segments are subject to a number of local, state and federal laws, statutes, ordinances, rules and regulations concerning zoning, building design, construction, stormwater permitting and discharge and similar matters, as well as open space, wetlands and environmentally protected areas.
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