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. Everspin Technologies's current ratio for the quarter that ended in Sep. 2024 was 6.74.
Everspin Technologies has a current ratio of 6.74. 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 Everspin Technologies's Current Ratio or its related term are showing as below:
MRAM'
s Current Ratio Range Over the Past 10 Years
Min: 0.41 Med: 3.57 Max: 11.11
Current: 6.74
During the past 10 years, Everspin Technologies's highest Current Ratio was 11.11. The lowest was 0.41. And the median was 3.57.
MRAM's Current Ratio is ranked better than 85.69% of 1013
companies
in the Semiconductors industry
Industry Median: 2.41
vs MRAM: 6.74
Everspin Technologies Current Ratio Historical Data
The historical data trend for Everspin Technologies'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 Everspin Technologies's Current Ratio
For the Semiconductors subindustry, Everspin Technologies'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.
Everspin Technologies's Current Ratio Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Everspin Technologies's Current Ratio distribution charts can be found below:
* The bar in red indicates where Everspin Technologies's Current Ratio falls into.
Everspin Technologies 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.
Everspin Technologies'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.
Everspin Technologies (NAS:MRAM) 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.
Everspin Technologies Current Ratio Related Terms
Thank you for viewing the detailed overview of Everspin Technologies's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Everspin Technologies Inc is a provider of Magnetoresistive Random Access Memory (MRAM) products. Its portfolio of MRAM technologies, including Toggle MRAM and Spin-transfer Torque MRAM (STT-MRAM), delivers superior performance, persistence, and reliability in non-volatile memories that transform how mission-critical data is protected against power loss. The company derives revenue from the sale of MRAM-based products in discrete unit form, licenses of and royalties on MRAM and magnetic sensor technology, the sale of backend foundry services, and design services to third parties. It recognizes revenue in three primary geographic regions; North America; Europe, the Middle East, and Africa (EMEA); and Asia-Pacific (APAC).
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