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. Indraprastha Gas's current ratio for the quarter that ended in Mar. 2024 was 1.07.
Indraprastha Gas has a current ratio of 1.07. It generally indicates good short-term financial strength.
The historical rank and industry rank for Indraprastha Gas's Current Ratio or its related term are showing as below:
NSE:IGL'
s Current Ratio Range Over the Past 10 Years
Min: 1 Med: 1.27 Max: 1.52
Current: 1.07
During the past 13 years, Indraprastha Gas's highest Current Ratio was 1.52. The lowest was 1.00. And the median was 1.27.
NSE:IGL's Current Ratio is ranked better than 50.58% of 516
companies
in the Utilities - Regulated industry
Industry Median: 1.06
vs NSE:IGL: 1.07
Indraprastha Gas Current Ratio Historical Data
The historical data trend for Indraprastha Gas'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 Indraprastha Gas's Current Ratio
For the Utilities - Regulated Gas subindustry, Indraprastha Gas'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.
Indraprastha Gas's Current Ratio Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Indraprastha Gas's Current Ratio distribution charts can be found below:
* The bar in red indicates where Indraprastha Gas's Current Ratio falls into.
Indraprastha Gas 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.
Indraprastha Gas's Current Ratio for the fiscal year that ended in Mar. 2024 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.
Indraprastha Gas (NSE:IGL) 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.
Indraprastha Gas Current Ratio Related Terms
Thank you for viewing the detailed overview of Indraprastha Gas's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Indraprastha Gas Ltd, or IGL, is an Indian utility company that derives nearly all of its revenue from the sale of natural gas. IGL supplies compressed natural gas (CNG) to the transport sector and piped natural gas (PNG) to domestic, industrial, and commercial sector customers. Most of the natural gas sold by IGL is in the form of compressed natural gas. CNG is an alternative to fossil fuels that is distributed from IGL's portfolio of fueling stations to power a variety of vehicles. The vast majority of these CNG stations are located in the Delhi and National Capital Regions. IGL distributes a significant amount of natural gas through its network of pipelines in Delhi and the National Capital Region, as well. The customers served by IGL's PNG business are primarily residential consumers.
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