What is Global Business Travel Group Current Ratio?
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. Global Business Travel Group's current ratio for the quarter that ended in Mar. 2024 was 1.50.
Global Business Travel Group has a current ratio of 1.50. It generally indicates good short-term financial strength.
The historical rank and industry rank for Global Business Travel Group's Current Ratio or its related term are showing as below:
GBTG'
s Current Ratio Range Over the Past 10 Years
Min: 1.46 Med: 1.6 Max: 1.65
Current: 1.5
During the past 5 years, Global Business Travel Group's highest Current Ratio was 1.65. The lowest was 1.46. And the median was 1.60.
GBTG's Current Ratio is ranked worse than 58.23% of 2837
companies
in the Software industry
Industry Median: 1.77
vs GBTG: 1.50
Global Business Travel Group 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 Global Business Travel Group's Current Ratio
For the Software - Application subindustry, Global Business Travel 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.
Global Business Travel Group's Current Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Global Business Travel Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Global Business Travel Group's Current Ratio falls into.
Global Business Travel 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.
* 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.
Global Business Travel Group (NYSE:GBTG) 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.
Global Business Travel Group Current Ratio Related Terms
Thank you for viewing the detailed overview of Global Business Travel Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Global Business Travel Group (Global Business Travel Group) Business Description
Global Business Travel Group Inc operates as a business-to-business travel platform. It is engaged in providing software and services to manage travel, expenses, and meetings and events for companies of all sizes. The company is engaged in building the marketplace in B2B travel to deliver unrivaled choice, value, and experiences. It also provides business travel solutions, simplified travel management, and business consulting services. Further, It provides a service solution, automated booking, diverse options, system integration, and specialized traveler care. The company also offers Expert Auditor Expert Care and Business Travel App.
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