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. African Copper's current ratio for the quarter that ended in Sep. 2014 was 0.13.
African Copper has a current ratio of 0.13. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If African Copper 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 African Copper's Current Ratio or its related term are showing as below:
LSE:ACU'
s Current Ratio Range Over the Past 10 Years
Min: 0.12 Med: 0.45 Max: 51.95
Current: 0.16
During the past 10 years, African Copper's highest Current Ratio was 51.95. The lowest was 0.12. And the median was 0.45.
LSE:ACU's Current Ratio is not ranked
in the Metals & Mining industry.
Industry Median: 2.64
vs LSE:ACU: 0.16
African Copper (LSE:ACU) 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.
African Copper Current Ratio Related Terms
African Copper Current Ratio Historical Data
* Premium members only.
The historical data trend for African Copper'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.
African Copper Current Ratio Competitor Comparison
For the Copper subindustry, African Copper'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.
African Copper Current Ratio vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, African Copper's Current Ratio distribution charts can be found below:
* The bar in red indicates where African Copper'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.
African Copper (LSE:ACU) has a Current Ratio of 0.13 as of Sep. 2014. This is 71% below median its historical median of 0.45. Over the past decade, African Copper's Current Ratio has ranged from 0.12 to 51.95.
Is African Copper's Current Ratio too high?
African Copper's current Current Ratio of 0.13 is 71% below median its 10-year median of 0.45. Over the past 10 years, this metric has ranged from a low of 0.12 to a high of 51.95. The Metals & Mining industry median Current Ratio is 2.64. African Copper's value of 0.13 is 95.1% below this industry median.
How does African Copper's Current Ratio compare to competitors?
African Copper's Current Ratio of 0.13 can be compared against companies in the Metals & Mining industry. The industry median Current Ratio is 2.64. African Copper's value of 0.13 is 95.1% below this benchmark. Historically, African Copper's own Current Ratio has ranged from 0.12 to 51.95 over the past decade. While the company's 10-year median is 0.45 vs. the industry median of 2.64, African Copper has consistently been below 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 Metals & Mining company?
The median Current Ratio among Metals & Mining companies is 2.64, based on 2,637 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. African Copper's current Current Ratio of 0.13 is 95.1% 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 Metals & Mining industry, the median Current Ratio is 2.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. African Copper's current Current Ratio is 0.13, which is 71% below median its own 10-year median of 0.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African Copper stock overvalued right now?
African Copper (LSE:ACU) has a current Current Ratio of 0.13. The current Current Ratio is 0.13, which is 71% below median its 10-year median of 0.45 and 95.1% below the Metals & Mining industry median of 2.64. 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 African Copper (LSE:ACU), the current Current Ratio is 0.13 as of Sep. 2014. 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.
African Copper PLC was incorporated on February 11, 2004 in England and Wales. The Company is engaged in the exploration for, development and mining of, copper deposits in the Republic of Botswana. Its main activity is that of a holding company. Its main project is the copper producing open pit Mowana mine. The Company's wholly-owned subsidiary Messina holds the Dukwe Project comprising exploration licence PL 33/2005, with an area of 139.6 km2. The Dukwe Project with its associated licences encompasses the Mowana Mine and all current estimated mineral resources and reserves associated with the mine; together with north and south extensions of mineralization that lie outside of the Mowana Mine licence area. It also owns the rights to the adjacent Thakadu-Makala deposits and holds permits in exploration properties at the Matsitama Project which is contiguous to the southern boundary of the Mowana Mine.
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