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. NorthStar Realty Finance's current ratio for the quarter that ended in Sep. 2016 was 4.59.
NorthStar Realty Finance has a current ratio of 4.59. 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 NorthStar Realty Finance's Current Ratio or its related term are showing as below:
NRFPRD.PFD'
s Current Ratio Range Over the Past 10 Years
Min: 0.52 Med: 4.05 Max: 162.35
Current: 4.59
During the past 13 years, NorthStar Realty Finance's highest Current Ratio was 162.35. The lowest was 0.52. And the median was 4.05.
NRFPRD.PFD's Current Ratio is not ranked
in the REITs industry.
Industry Median: 1
vs NRFPRD.PFD: 4.59
NorthStar Realty Finance 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 NorthStar Realty Finance's Current Ratio
For the REIT - Retail subindustry, NorthStar Realty Finance'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.
NorthStar Realty Finance's Current Ratio Distribution in the REITs Industry
For the REITs industry and Real Estate sector, NorthStar Realty Finance's Current Ratio distribution charts can be found below:
* The bar in red indicates where NorthStar Realty Finance's Current Ratio falls into.
NorthStar Realty Finance 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.
NorthStar Realty Finance's Current Ratio for the fiscal year that ended in Dec. 2015 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.
NorthStar Realty Finance (NYSE:NRFPRD.PFD) 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.
NorthStar Realty Finance Current Ratio Related Terms
Thank you for viewing the detailed overview of NorthStar Realty Finance's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Northstar Realty Finance Corp is a Maryland corporation formed in October 2003. The Company is an internally managed REIT, and is a diversified commercial real estate investment and asset management company. NorthStar Realty Finance Limited Partnership holds all of the Company's assets and conducts its operation directly or indirectly. The Company invests in multiple asset classes across commercial real estate. These investments are in the form of acquiring real estate, originating or acquiring senior or subordinate loans, as well as CRE investments, both in the United States and internationally. The asset management business is focused on raising and managing capital on a fee basis from alternative sources, which includes non-traded real estate investment trusts, and sponsoring other companies through joint ventures and partnerships, such as RXR Realty, LLC, or RXR Realty. The Company's commercial real estate debt business is focused on originating, structuring, acquiring and managing senior and subordinate debt investments secured by commercial real estate, including first mortgage loans, subordinate interests, mezzanine loans, credit tenant loans and other loans, including preferred equity interests in borrowers who own such properties. The Company competes with many third parties engaged in real estate investment activities including publicly-traded REITs, non-traded REITs, insurance companies, commercial and investment banking firms, private equity funds. The Company is subject to supervision and regulation by state and federal governmental authorities and is subject to various laws and judicial and administrative decisions imposing various requirements and restrictions.
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