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Ariana Resources (LSE:AAU) Current Ratio : 3.90 (As of Jun. 2024)


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What is Ariana Resources Current Ratio?

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. Ariana Resources's current ratio for the quarter that ended in Jun. 2024 was 3.90.

Ariana Resources has a current ratio of 3.90. 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 Ariana Resources's Current Ratio or its related term are showing as below:

LSE:AAU' s Current Ratio Range Over the Past 10 Years
Min: 3.63   Med: 9.01   Max: 25.68
Current: 3.9

During the past 13 years, Ariana Resources's highest Current Ratio was 25.68. The lowest was 3.63. And the median was 9.01.

LSE:AAU's Current Ratio is ranked better than
69% of 2655 companies
in the Metals & Mining industry
Industry Median: 1.83 vs LSE:AAU: 3.90

Ariana Resources Current Ratio Historical Data

The historical data trend for Ariana Resources'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.

* Premium members only.

Ariana Resources Current Ratio Chart

Ariana Resources Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Current Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.81 3.63 8.50 13.09 11.84

Ariana Resources Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 16.57 13.09 25.68 11.84 3.90

Competitive Comparison of Ariana Resources's Current Ratio

For the Gold subindustry, Ariana Resources'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.


Ariana Resources's Current Ratio Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Ariana Resources's Current Ratio distribution charts can be found below:

* The bar in red indicates where Ariana Resources's Current Ratio falls into.



Ariana Resources 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.

Ariana Resources's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Current Ratio (A: Dec. 2023 )=Total Current Assets (A: Dec. 2023 )/Total Current Liabilities (A: Dec. 2023 )
=4.961/0.419
=11.84

Ariana Resources's Current Ratio for the quarter that ended in Jun. 2024 is calculated as

Current Ratio (Q: Jun. 2024 )=Total Current Assets (Q: Jun. 2024 )/Total Current Liabilities (Q: Jun. 2024 )
=2.406/0.617
=3.90

* 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.


Ariana Resources  (LSE:AAU) 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.


Ariana Resources Current Ratio Related Terms

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Ariana Resources Business Description

Traded in Other Exchanges
Address
45 King William Street, 2nd Floor, Regis House, London, GBR, EC4R 9AN
Ariana Resources PLC involves in the acquisition, exploration, and development of gold and technology metals in Turkey and Australia. The company along with its subsidiaries focuses on the Red Rabbit Gold Project located in western Turkey and has the Salinbas,Tavsan, Ivrindi and other projects. The group currently identifies one division as an operating segment: mineral exploration. The activities for this operating segment are as follows: Mineral exploration: incorporates the acquisition, exploration and development of mineral resources. Reconciling items include non mineral exploration costs and transactions between Group and associate companies. Its geographical segments include the United Kingdom and Turkey.

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