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. Hospitality Property Fund's current ratio for the quarter that ended in Sep. 2020 was 5.21.
Hospitality Property Fund has a current ratio of 5.21. 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 Hospitality Property Fund's Current Ratio or its related term are showing as below:
JSE:TSP'
s Current Ratio Range Over the Past 10 Years
Min: 0.04 Med: 0.99 Max: 7.49
Current: 5.21
During the past 11 years, Hospitality Property Fund's highest Current Ratio was 7.49. The lowest was 0.04. And the median was 0.99.
JSE:TSP's Current Ratio is not ranked
in the REITs industry.
Industry Median: 0.985
vs JSE:TSP: 5.21
Hospitality Property Fund (JSE:TSP) 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.
Hospitality Property Fund Current Ratio Related Terms
Hospitality Property Fund 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.
JSE:TSP vs HST, PK, APLE: Current Ratio Comparison
For the REIT - Hotel & Motel subindustry, Hospitality Property Fund'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.
Hospitality Property Fund Current Ratio vs REITs Industry
For the REITs industry and Real Estate sector, Hospitality Property Fund's Current Ratio distribution charts can be found below:
* The bar in red indicates where Hospitality Property Fund'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.
Hospitality Property Fund (JSE:TSP) has a Current Ratio of 5.21 as of Sep. 2020. This is 426% above median its historical median of 0.99. Over the past decade, Hospitality Property Fund's Current Ratio has ranged from 0.04 to 7.49.
Is Hospitality Property Fund's Current Ratio too high?
Hospitality Property Fund's current Current Ratio of 5.21 is 426% above median its 10-year median of 0.99. Over the past 10 years, this metric has ranged from a low of 0.04 to a high of 7.49. The REITs industry median Current Ratio is 0.99. Hospitality Property Fund's value of 5.21 is 428.9% above this industry median. Overall, Hospitality Property Fund has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Hospitality Property Fund's Current Ratio compare to HST and PK?
Hospitality Property Fund's Current Ratio of 5.21 can be compared against companies in the REITs industry. The industry median Current Ratio is 0.99. Hospitality Property Fund's value of 5.21 is 428.9% above this benchmark. Historically, Hospitality Property Fund's own Current Ratio has ranged from 0.04 to 7.49 over the past decade. While the company's 10-year median is 0.99 vs. the industry median of 0.99, Hospitality Property Fund has consistently been above the industry average. 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 a REITs company?
The median Current Ratio among REITs companies is 0.99, based on 760 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. Hospitality Property Fund's current Current Ratio of 5.21 is 428.9% 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 REITs industry, the median Current Ratio is 0.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hospitality Property Fund's current Current Ratio is 5.21, which is 426% above median its own 10-year median of 0.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hospitality Property Fund stock overvalued right now?
Hospitality Property Fund (JSE:TSP) has a current Current Ratio of 5.21. The current Current Ratio is 5.21, which is 426% above median its 10-year median of 0.99 and 428.9% above the REITs industry median of 0.99. Hospitality Property Fund's overall GF Score™ is 11/100 with 8 warning signs to review. 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 Hospitality Property Fund (JSE:TSP), the current Current Ratio is 5.21 as of Sep. 2020. 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.
Hospitality Property Fund Ltd is a specialised real estate investment trust investing in the hotel and leisure sector, providing investors with exposure to both the property and hospitality industries. The company's portfolio caters to a wide-ranging domestic and international market and accommodates various segments including corporate, government, leisure, group conferencing and event business. The properties are well diversified in terms of geographic location and class of hotel, thus mitigating the inherent risks associated within the cyclical nature of the hospitality industry.
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