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. Davide Campari-Milano NV's current ratio for the quarter that ended in Dec. 2023 was 1.98.
Davide Campari-Milano NV has a current ratio of 1.98. It generally indicates good short-term financial strength.
The historical rank and industry rank for Davide Campari-Milano NV's Current Ratio or its related term are showing as below:
MIL:CPR'
s Current Ratio Range Over the Past 10 Years
Min: 1.49 Med: 2.07 Max: 3.1
Current: 1.98
During the past 13 years, Davide Campari-Milano NV's highest Current Ratio was 3.10. The lowest was 1.49. And the median was 2.07.
MIL:CPR's Current Ratio is ranked better than 58.22% of 213
companies
in the Beverages - Alcoholic industry
Industry Median: 1.68
vs MIL:CPR: 1.98
Davide Campari-Milano NV 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.
Competitive Comparison of Davide Campari-Milano NV's Current Ratio
For the Beverages - Wineries & Distilleries subindustry, Davide Campari-Milano NV'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.
Davide Campari-Milano NV's Current Ratio Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Davide Campari-Milano NV's Current Ratio distribution charts can be found below:
* The bar in red indicates where Davide Campari-Milano NV's Current Ratio falls into.
Davide Campari-Milano NV 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.
Davide Campari-Milano NV's Current Ratio for the fiscal year that ended in Dec. 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.
Davide Campari-Milano NV (MIL:CPR) 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.
Davide Campari-Milano NV Current Ratio Related Terms
Thank you for viewing the detailed overview of Davide Campari-Milano NV's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Davide Campari-Milano NV (MIL:CPR) Business Description
Davide Campari-Milano, or Campari, is the Italian-headquartered parent of the Campari Group and is the world's leading manufacturer of liqueurs, according to Euromonitor, with a volume share of 10% in 2022. The company's liqueur portfolio includes aperitifs Aperol, Campari, Cinzano Vermouth, and Grand Marnier. The remainder of the portfolio spans a wide range of categories, including global priority brands Skyy vodka and Wild Turkey bourbon, and niche brands such as Appleton Estate Rum, Bulldog gin, and Espolon tequila. Campari also produces and markets a range of champagne and sparkling wines.Campari is controlled by Lagfin S.C.A., a Luxembourg-based holding company, which holds 54% of the share capital and over 60% of the voting rights. A further 43% of the equity is free float.
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