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. Aurubis AG's current ratio for the quarter that ended in Jun. 2024 was 2.13.
Aurubis AG has a current ratio of 2.13. It generally indicates good short-term financial strength.
The historical rank and industry rank for Aurubis AG's Current Ratio or its related term are showing as below:
LTS:0K7F'
s Current Ratio Range Over the Past 10 Years
Min: 1.7 Med: 2.35 Max: 2.65
Current: 2.13
During the past 13 years, Aurubis AG's highest Current Ratio was 2.65. The lowest was 1.70. And the median was 2.35.
LTS:0K7F's Current Ratio is ranked better than 55.33% of 3022
companies
in the Industrial Products industry
Industry Median: 1.98
vs LTS:0K7F: 2.13
Aurubis AG Current Ratio Historical Data
The historical data trend for Aurubis AG'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.
Competitive Comparison of Aurubis AG's Current Ratio
For the Metal Fabrication subindustry, Aurubis AG'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.
Aurubis AG's Current Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Aurubis AG's Current Ratio distribution charts can be found below:
* The bar in red indicates where Aurubis AG's Current Ratio falls into.
Aurubis AG 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.
Aurubis AG's Current Ratio for the fiscal year that ended in Sep. 2023 is calculated as
* 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.
Aurubis AG (LTS:0K7F) 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.
Aurubis AG Current Ratio Related Terms
Thank you for viewing the detailed overview of Aurubis AG's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Aurubis AG produces copper, using raw materials which include copper concentrates and recycling materials. The company also produces precious metals such as gold and silver and a range of other products, including sulfuric acid and iron silicate, as byproducts of copper production. Revenue is predominantly generated through the sale of continuous cast wire rods, copper cathodes, precious metals and continuous cast shapes, used in the manufacture of cables and wires which are used in electrical applications. It has two segments Multimetal Recycling and Custom Smelting & Products which is the key revenue generating segment. The company is based in Germany and has production sites across Europe and the United States.
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