KEGS (1812 Brewing Company) Current Ratio: 0.21 (As of Jun. 2009)

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What is 1812 Brewing Company Current Ratio?

1812 Brewing Company KEGS Current Ratio is 0.21 as of Jun. 2009.

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. 1812 Brewing Company's current ratio for the quarter that ended in Jun. 2009 was 0.21.

1812 Brewing Company has a current ratio of 0.21. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If 1812 Brewing Company 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 1812 Brewing Company's Current Ratio or its related term are showing as below:

KEGS's Current Ratio is not ranked *
in the Asset Management industry.
Industry Median: 3
* Ranked among companies with meaningful Current Ratio only.

1812 Brewing Company  (OTCPK:KEGS) 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.


1812 Brewing Company Current Ratio Related Terms


1812 Brewing Company Current Ratio Historical Data

* Premium members only.

The historical data trend for 1812 Brewing Company'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.

1812 Brewing Company Current Ratio Chart

1812 Brewing Company Annual Data
Trend Dec03 Dec04 Dec05 Dec06 Dec07 Dec08
Current Ratio
Get a 7-Day Free Trial 0.23 0.08 0.00 0.97 0.57

1812 Brewing Company Quarterly Data
Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09
Current Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.56 0.72 0.57 0.38 0.21

KEGS vs VCAN, CIIT, LWLW: Current Ratio Comparison

For the Asset Management subindustry, 1812 Brewing Company'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.


1812 Brewing Company Current Ratio vs Asset Management Industry

For the Asset Management industry and Financial Services sector, 1812 Brewing Company's Current Ratio distribution charts can be found below:

* The bar in red indicates where 1812 Brewing Company's Current Ratio falls into.



1812 Brewing Company 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.

1812 Brewing Company's Current Ratio for the fiscal year that ended in Dec. 2008 is calculated as

Current Ratio (A: Dec. 2008 )=Total Current Assets (A: Dec. 2008 )/Total Current Liabilities (A: Dec. 2008 )
=10.468/18.507
=0.57

1812 Brewing Company's Current Ratio for the quarter that ended in Jun. 2009 is calculated as

Current Ratio (Q: Jun. 2009 )=Total Current Assets (Q: Jun. 2009 )/Total Current Liabilities (Q: Jun. 2009 )
=6.126/29.472
=0.21

* 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.

Frequently Asked Questions Learn more about Current Ratio →
What does a Current Ratio of 0.21 mean?
1812 Brewing Company (KEGS) has a Current Ratio of 0.21 as of Jun. 2009.
Is 1812 Brewing Company's Current Ratio too high?
1812 Brewing Company's current Current Ratio is 0.21. The Asset Management industry median Current Ratio is 3.00. 1812 Brewing Company's value of 0.21 is 93% below this industry median.
How does 1812 Brewing Company's Current Ratio compare to VCAN and CIIT?
1812 Brewing Company's Current Ratio of 0.21 can be compared against companies in the Asset Management industry. The industry median Current Ratio is 3.00. 1812 Brewing Company's value of 0.21 is 93% below 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 Asset Management company?
The median Current Ratio among Asset Management companies is 3.00, based on 702 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. 1812 Brewing Company's current Current Ratio of 0.21 is 93% below 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 Asset Management industry, the median Current Ratio is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. 1812 Brewing Company's current Current Ratio is 0.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is 1812 Brewing Company stock overvalued right now?
1812 Brewing Company (KEGS) has a current Current Ratio of 0.21. The current Current Ratio is 0.21 and 93% below the Asset Management industry median of 3.00. 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 1812 Brewing Company (KEGS), the current Current Ratio is 0.21 as of Jun. 2009. 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.

1812 Brewing Company Business Description

Address 981 Waterman Drive, P.O. Box 6192, Watertown, NY, USA, 13601
1812 Brewing Company Inc is an investment and operating company focused on restaurant operations and beverage production, including beer and other non-alcoholic beverages. The Company is constructing a beverages production plant, in which it intends to produce alcoholic beverages, such as beer, hard seltzer, hard cider, and kombucha, as well as non-alcoholic beverages such as teas and sodas. Its beer products include War of 1812 Amber Ale, Helles Bells, and Route 11 Lager.