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. Hargreaves Lansdown's current ratio for the quarter that ended in Jun. 2024 was 2.15.
Hargreaves Lansdown has a current ratio of 2.15. It generally indicates good short-term financial strength.
The historical rank and industry rank for Hargreaves Lansdown's Current Ratio or its related term are showing as below:
HRGLF'
s Current Ratio Range Over the Past 10 Years
Min: 1.39 Med: 1.78 Max: 2.15
Current: 2.15
During the past 13 years, Hargreaves Lansdown's highest Current Ratio was 2.15. The lowest was 1.39. And the median was 1.78.
HRGLF's Current Ratio is ranked worse than 58.3% of 681
companies
in the Asset Management industry
Industry Median: 2.88
vs HRGLF: 2.15
Hargreaves Lansdown Current Ratio Historical Data
The historical data trend for Hargreaves Lansdown'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 Hargreaves Lansdown's Current Ratio
For the Asset Management subindustry, Hargreaves Lansdown'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.
Hargreaves Lansdown's Current Ratio Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Hargreaves Lansdown's Current Ratio distribution charts can be found below:
* The bar in red indicates where Hargreaves Lansdown's Current Ratio falls into.
Hargreaves Lansdown 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.
Hargreaves Lansdown's Current Ratio for the fiscal year that ended in Jun. 2024 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.
Hargreaves Lansdown (OTCPK:HRGLF) 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.
Hargreaves Lansdown Current Ratio Related Terms
Thank you for viewing the detailed overview of Hargreaves Lansdown's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Hargreaves Lansdown PLC operates a large direct-to-investor investment service in the United Kingdom built around offerings tailored to client needs. Clients can elect to hold all their funds, stocks, bonds, ETFs, and other financial instruments in a single service with various tax advantages. There is only one segment, being the direct wealth management service administering investments in ISA, SIPP and Fund & Share accounts, and providing cash management services for individuals and corporates in the United Kingdom The company's clients mostly comprise individual investors and corporate clients. It mainly earns recurring revenue through the administration and management of assets held under its platform, and secondarily earns transactional revenue.
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