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. GD Culture Group's current ratio for the quarter that ended in Dec. 2024 was 0.02.
GD Culture Group has a current ratio of 0.02. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If GD Culture Group 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 GD Culture Group's Current Ratio or its related term are showing as below:
GDC'
s Current Ratio Range Over the Past 10 Years
Min: 0.02 Med: 1.47 Max: 22.53
Current: 0.02
During the past 10 years, GD Culture Group's highest Current Ratio was 22.53. The lowest was 0.02. And the median was 1.47.
GDC's Current Ratio is ranked worse than 99.15% of 585
companies
in the Interactive Media industry
Industry Median: 2.14
vs GDC: 0.02
GD Culture Group Current Ratio Historical Data
The historical data trend for GD Culture 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 GD Culture Group's Current Ratio
For the Electronic Gaming & Multimedia subindustry, GD Culture 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.
GD Culture Group's Current Ratio Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, GD Culture Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where GD Culture Group'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.
GD Culture Group (NAS:GDC) 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.
GD Culture Group Current Ratio Related Terms
Thank you for viewing the detailed overview of GD Culture Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
GD Culture Group Ltd focuses its business on three segments mainly through the Company and two subsidiaries. 1) AI-driven digital human creation and customization; 2) Live streaming and e-commerce and 3) Live streaming interactive game. The company has relentlessly been focusing on serving its customers and creating value for them through the continual innovation and optimization of its products and services. For the AI-driven digital human creation and customization sector, the Company uses AI algorithms and software to generate realistic 3D or 2D digital human models. AI algorithms and machine learning models are used to simulate human characteristics, such as facial expressions, body movements, and even speech patterns.
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