Union de Cervecerias Peruanas Backus & Johnston has a current ratio of 0.94. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Union de Cervecerias Peruanas Backus & Johnston has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
LIM:BACKUAC1's Current Ratio is not ranked *
in the Beverages - Alcoholic industry.
Industry Median: 1.795 * Ranked among companies with meaningful Current Ratio only.
Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUAC1) 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.
Union de Cervecerias Peruanas Backus & Johnston Current Ratio Related Terms
Union de Cervecerias Peruanas Backus & Johnston 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.
Union de Cervecerias Peruanas Backus & Johnston Current Ratio Chart
Union de Cervecerias Peruanas Backus & Johnston Annual Data
Union de Cervecerias Peruanas Backus & Johnston Current Ratio Competitor Comparison
For the Beverages - Brewers subindustry, Union de Cervecerias Peruanas Backus & Johnston'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.
Union de Cervecerias Peruanas Backus & Johnston Current Ratio vs Beverages - Alcoholic Industry
* 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.
Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUAC1) has a Current Ratio of 0.94 as of Dec. 2018.
Is Union de Cervecerias Peruanas Backus & Johnston's Current Ratio too high?
Union de Cervecerias Peruanas Backus & Johnston's current Current Ratio is 0.94. The Beverages - Alcoholic industry median Current Ratio is 1.80. Union de Cervecerias Peruanas Backus & Johnston's value of 0.94 is 47.6% below this industry median. Overall, Union de Cervecerias Peruanas Backus & Johnston has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Union de Cervecerias Peruanas Backus & Johnston's Current Ratio compare to competitors?
Union de Cervecerias Peruanas Backus & Johnston's Current Ratio of 0.94 can be compared against companies in the Beverages - Alcoholic industry. The industry median Current Ratio is 1.80. Union de Cervecerias Peruanas Backus & Johnston's value of 0.94 is 47.6% 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 a Beverages - Alcoholic company?
The median Current Ratio among Beverages - Alcoholic companies is 1.80, based on 214 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. Union de Cervecerias Peruanas Backus & Johnston's current Current Ratio of 0.94 is 47.6% 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 Beverages - Alcoholic industry, the median Current Ratio is 1.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Union de Cervecerias Peruanas Backus & Johnston's current Current Ratio is 0.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Union de Cervecerias Peruanas Backus & Johnston stock overvalued right now?
Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUAC1) has a current Current Ratio of 0.94. The current Current Ratio is 0.94 and 47.6% below the Beverages - Alcoholic industry median of 1.80. Union de Cervecerias Peruanas Backus & Johnston's overall GF Score™ is 23/100. 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 Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUAC1), the current Current Ratio is 0.94 as of Dec. 2018. 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.
Union de Cervecerias Peruanas Backus & Johnston Business Description
Union de Cervecerias Peruanas Backus & Johnston SA is engaged in the business of production, packaging, sale, distribution, and all other types of business related to malted and malt beverages, non-alcoholic beverages, and carbonated waters. The company's main business also includes investment in securities of domestic and foreign companies; the exploitation of rural properties; the sale, processing, conservation, marketing, and export of agricultural products; and the provision of advisory services related to these products.
23GF Score
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