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. Management Consulting Group's current ratio for the quarter that ended in Dec. 2019 was 1.91.
Management Consulting Group has a current ratio of 1.91. It generally indicates good short-term financial strength.
The historical rank and industry rank for Management Consulting Group's Current Ratio or its related term are showing as below:
LSE:MMC'
s Current Ratio Range Over the Past 10 Years
Min: 0.6 Med: 1.02 Max: 4.25
Current: 1.91
During the past 13 years, Management Consulting Group's highest Current Ratio was 4.25. The lowest was 0.60. And the median was 1.02.
LSE:MMC's Current Ratio is not ranked
in the Business Services industry.
Industry Median: 1.81
vs LSE:MMC: 1.91
Management Consulting Group (LSE:MMC) 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.
Management Consulting Group Current Ratio Related Terms
Management Consulting Group 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.
LSE:MMC vs INFO, VRSK, EFX: Current Ratio Comparison
For the Consulting Services subindustry, Management Consulting Group'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.
Management Consulting Group Current Ratio vs Business Services Industry
For the Business Services industry and Industrials sector, Management Consulting Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Management Consulting Group'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.
Management Consulting Group (LSE:MMC) has a Current Ratio of 1.91 as of Dec. 2019. This is 87% above median its historical median of 1.02. Over the past decade, Management Consulting Group's Current Ratio has ranged from 0.60 to 4.25.
Is Management Consulting Group's Current Ratio too high?
Management Consulting Group's current Current Ratio of 1.91 is 87% above median its 10-year median of 1.02. Over the past 10 years, this metric has ranged from a low of 0.60 to a high of 4.25. The Business Services industry median Current Ratio is 1.81. Management Consulting Group's value of 1.91 is 5.5% above this industry median.
How does Management Consulting Group's Current Ratio compare to INFO and VRSK?
Management Consulting Group's Current Ratio of 1.91 can be compared against companies in the Business Services industry. The industry median Current Ratio is 1.81. Management Consulting Group's value of 1.91 is 5.5% above this benchmark. Historically, Management Consulting Group's own Current Ratio has ranged from 0.60 to 4.25 over the past decade. While the company's 10-year median is 1.02 vs. the industry median of 1.81, Management Consulting Group 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 Business Services company?
The median Current Ratio among Business Services companies is 1.81, based on 1,092 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. Management Consulting Group's current Current Ratio of 1.91 is 5.5% 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 Business Services industry, the median Current Ratio is 1.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Management Consulting Group's current Current Ratio is 1.91, which is 87% above median its own 10-year median of 1.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Management Consulting Group stock overvalued right now?
Based on GuruFocus' analysis, Management Consulting Group (LSE:MMC) is currently considered Possible Value Trap. The current Current Ratio is 1.91, which is 87% above median its 10-year median of 1.02 and 5.5% above the Business Services industry median of 1.81. 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 Management Consulting Group (LSE:MMC), the current Current Ratio is 1.91 as of Dec. 2019. 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.
Management Consulting Group PLC is engaged in providing professional services to various industries and sectors via the Proudfoot practice. Proudfoot, which is a professional service practice designs, implements and accelerates the operational transformation that realizes tomorrow's results today. The company serves various industries including manufacturing, natural resources, consumer packaged goods, transportation, automotive, building materials and heavy industry. It also provides market-specific local customization for Financial Services and Healthcare sectors. The company provides its services in the Americas, Europe among other regions, and generates a vast majority of its revenue from Europe.
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