LMF Acquisition Opportunities has a current ratio of 14.35. 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 LMF Acquisition Opportunities's Current Ratio or its related term are showing as below:
LMAOW'
s Current Ratio Range Over the Past 10 Years
Min: 0.34 Med: 4.36 Max: 14.35
Current: 14.35
During the past 2 years, LMF Acquisition Opportunities's highest Current Ratio was 14.35. The lowest was 0.34. And the median was 4.36.
LMAOW's Current Ratio is not ranked
in the Diversified Financial Services industry.
Industry Median: 3.19
vs LMAOW: 14.35
LMF Acquisition Opportunities (NAS:LMAOW) 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.
LMF Acquisition Opportunities Current Ratio Related Terms
LMF Acquisition Opportunities 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.
LMAOW vs ENCP, FXCO, VSAC: Current Ratio Comparison
For the Shell Companies subindustry, LMF Acquisition Opportunities'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.
LMF Acquisition Opportunities Current Ratio vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, LMF Acquisition Opportunities's Current Ratio distribution charts can be found below:
* The bar in red indicates where LMF Acquisition Opportunities'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.
LMF Acquisition Opportunities (LMAOW) has a Current Ratio of 14.35 as of Jun. 2022. This is 229% above median its historical median of 4.36. Over the past decade, LMF Acquisition Opportunities' Current Ratio has ranged from 0.34 to 14.35.
Is LMF Acquisition Opportunities' Current Ratio too high?
LMF Acquisition Opportunities' current Current Ratio of 14.35 is 229% above median its 10-year median of 4.36. Over the past 10 years, this metric has ranged from a low of 0.34 to a high of 14.35. The Diversified Financial Services industry median Current Ratio is 3.19. LMF Acquisition Opportunities' value of 14.35 is 349.8% above this industry median. Overall, LMF Acquisition Opportunities has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does LMF Acquisition Opportunities' Current Ratio compare to ENCP and FXCO?
LMF Acquisition Opportunities' Current Ratio of 14.35 can be compared against companies in the Diversified Financial Services industry. The industry median Current Ratio is 3.19. LMF Acquisition Opportunities' value of 14.35 is 349.8% above this benchmark. Historically, LMF Acquisition Opportunities' own Current Ratio has ranged from 0.34 to 14.35 over the past decade. While the company's 10-year median is 4.36 vs. the industry median of 3.19, LMF Acquisition Opportunities 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 Diversified Financial Services company?
The median Current Ratio among Diversified Financial Services companies is 3.19, based on 502 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. LMF Acquisition Opportunities's current Current Ratio of 14.35 is 349.8% 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 Diversified Financial Services industry, the median Current Ratio is 3.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LMF Acquisition Opportunities's current Current Ratio is 14.35, which is 229% above median its own 10-year median of 4.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LMF Acquisition Opportunities stock overvalued right now?
LMF Acquisition Opportunities (LMAOW) has a current Current Ratio of 14.35. The current Current Ratio is 14.35, which is 229% above median its 10-year median of 4.36 and 349.8% above the Diversified Financial Services industry median of 3.19. LMF Acquisition Opportunities' overall GF Score™ is 22/100 with 2 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 LMF Acquisition Opportunities (LMAOW), the current Current Ratio is 14.35 as of Jun. 2022. 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.
LMF Acquisition Opportunities Business Description
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