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. Everybody Loves Languages's current ratio for the quarter that ended in Sep. 2021 was 5.46.
Everybody Loves Languages has a current ratio of 5.46. 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 Everybody Loves Languages's Current Ratio or its related term are showing as below:
FRA:VB6's Current Ratio is not ranked *
in the Education industry.
Industry Median: 1.505 * Ranked among companies with meaningful Current Ratio only.
Everybody Loves Languages (FRA:VB6) 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.
Everybody Loves Languages Current Ratio Related Terms
Everybody Loves Languages 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.
FRA:VB6 vs NYT, WLY, SCHL: Current Ratio Comparison
For the Education & Training Services subindustry, Everybody Loves Languages'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.
Everybody Loves Languages Current Ratio vs Education Industry
For the Education industry and Consumer Defensive sector, Everybody Loves Languages's Current Ratio distribution charts can be found below:
* The bar in red indicates where Everybody Loves Languages'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.
Everybody Loves Languages (FRA:VB6) has a Current Ratio of 5.46 as of Sep. 2021.
Is Everybody Loves Languages' Current Ratio too high?
Everybody Loves Languages' current Current Ratio is 5.46. The Education industry median Current Ratio is 1.51. Everybody Loves Languages' value of 5.46 is 262.8% above this industry median.
How does Everybody Loves Languages' Current Ratio compare to NYT and WLY?
Everybody Loves Languages' Current Ratio of 5.46 can be compared against companies in the Education industry. The industry median Current Ratio is 1.51. Everybody Loves Languages' value of 5.46 is 262.8% above this benchmark. 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 an Education company?
The median Current Ratio among Education companies is 1.51, based on 262 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. Everybody Loves Languages's current Current Ratio of 5.46 is 262.8% above 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 Education industry, the median Current Ratio is 1.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Everybody Loves Languages's current Current Ratio is 5.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Everybody Loves Languages stock overvalued right now?
Everybody Loves Languages (FRA:VB6) has a current Current Ratio of 5.46. The current Current Ratio is 5.46 and 262.8% above the Education industry median of 1.51. 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 Everybody Loves Languages (FRA:VB6), the current Current Ratio is 5.46 as of Sep. 2021. 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.
Everybody Loves Languages Corp is an Ed-tech language-learning and content development company empowering language educators to easily transition from traditional teaching methods to digital learning by integrating education, edutainment, and technology. It has two business segments; The license of intellectual property: Lingo Learning is a content-based publisher of English language learning textbook programs in China. It earns royalties from Licensing Sales compared to Finished Product Sales, and Online and Offline Language Learning; a web-based educational technology language learning, training, and assessment company. It provides the right to access to hosted software over a contract term without the customer taking possession of the software.
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