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. Gladstone Pacific Nickel's current ratio for the quarter that ended in Dec. 2012 was 17.74.
Gladstone Pacific Nickel has a current ratio of 17.74. 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 Gladstone Pacific Nickel's Current Ratio or its related term are showing as below:
LSE:GPN's Current Ratio is not ranked *
in the Metals & Mining industry.
Industry Median: 2.625 * Ranked among companies with meaningful Current Ratio only.
Gladstone Pacific Nickel (LSE:GPN) 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.
Gladstone Pacific Nickel Current Ratio Related Terms
Gladstone Pacific Nickel 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.
Gladstone Pacific Nickel Current Ratio Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Gladstone Pacific Nickel'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.
Gladstone Pacific Nickel Current Ratio vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Gladstone Pacific Nickel's Current Ratio distribution charts can be found below:
* The bar in red indicates where Gladstone Pacific Nickel'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.
Gladstone Pacific Nickel (LSE:GPN) has a Current Ratio of 17.74 as of Dec. 2012.
Is Gladstone Pacific Nickel's Current Ratio too high?
Gladstone Pacific Nickel's current Current Ratio is 17.74. The Metals & Mining industry median Current Ratio is 2.63. Gladstone Pacific Nickel's value of 17.74 is 575.8% above this industry median.
How does Gladstone Pacific Nickel's Current Ratio compare to competitors?
Gladstone Pacific Nickel's Current Ratio of 17.74 can be compared against companies in the Metals & Mining industry. The industry median Current Ratio is 2.63. Gladstone Pacific Nickel's value of 17.74 is 575.8% above 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 Metals & Mining company?
The median Current Ratio among Metals & Mining companies is 2.63, based on 2,632 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. Gladstone Pacific Nickel's current Current Ratio of 17.74 is 575.8% 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 Metals & Mining industry, the median Current Ratio is 2.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gladstone Pacific Nickel's current Current Ratio is 17.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gladstone Pacific Nickel stock overvalued right now?
Gladstone Pacific Nickel (LSE:GPN) has a current Current Ratio of 17.74. The current Current Ratio is 17.74 and 575.8% above the Metals & Mining industry median of 2.63. 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 Gladstone Pacific Nickel (LSE:GPN), the current Current Ratio is 17.74 as of Dec. 2012. 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.
Gladstone Pacific Nickel Ltd. is incorporated in Australia. The company, together with its subsidiaries, engages in the exploration and evaluation of mineral properties in Australia and the south-west Pacific region. It owns the Marlborough nickel/cobalt lateritic deposits located near Rockhampton in Central Queensland, Australia. Gladstone Pacific Nickel Ltd. was formerly known as Pearson Matheson Group Pty Ltd.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:GPN has been successfully added to your