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. Milton Industries's current ratio for the quarter that ended in Mar. 2022 was 3.01.
Milton Industries has a current ratio of 3.01. 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 Milton Industries's Current Ratio or its related term are showing as below:
NSE:MILTON's Current Ratio is not ranked *
in the Forest Products industry.
Industry Median: 1.7 * Ranked among companies with meaningful Current Ratio only.
Milton Industries Current Ratio Historical Data
The historical data trend for Milton Industries'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 Milton Industries's Current Ratio
For the Lumber & Wood Production subindustry, Milton Industries'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.
Milton Industries's Current Ratio Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Milton Industries's Current Ratio distribution charts can be found below:
* The bar in red indicates where Milton Industries's Current Ratio falls into.
Milton Industries 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.
Milton Industries's Current Ratio for the fiscal year that ended in Mar. 2022 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.
Milton Industries (NSE:MILTON) 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.
Milton Industries Current Ratio Related Terms
Thank you for viewing the detailed overview of Milton Industries's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Milton Industries (NSE:MILTON) Business Description
Milton Industries Ltd is engaged in the manufacturing of laminated sheets and other allied products. The firm produces artificial leather cloth and glass fiber reinforced epoxy (GFRE) sheets. It also manufactures, exports high-pressure laminates, industrial laminates, laminated boards, flooring laminates, artificial leather cloth, and other products. The business operates in three segments: Laminate, Rexine, and GFRE, of which the majority of the revenue comes from the GFRE division. The company's products are applicable on walls, doors, windows, cupboards, tabletops, hotels, cash counters, and home kitchens. The majority of the revenue comes from the Indian market.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
NSE:MILTON has been successfully added to your 