OTG (Otg Exp) Current Ratio: 1.08 (As of Dec. 2014)


What is Otg Exp Current Ratio?

Otg Exp OTG Current Ratio is 1.08 as of Dec. 2014.

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. Otg Exp's current ratio for the quarter that ended in Dec. 2014 was 1.08.

Otg Exp has a current ratio of 1.08. It generally indicates good short-term financial strength.

The historical rank and industry rank for Otg Exp's Current Ratio or its related term are showing as below:

OTG's Current Ratio is not ranked *
in the Restaurants industry.
Industry Median: 0.99
* Ranked among companies with meaningful Current Ratio only.

Otg Exp  (NAS:OTG) 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.

Otg Exp Current Ratio Related Terms

Otg Exp Current Ratio Historical Data

* Premium members only.

The historical data trend for Otg Exp'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.

Otg Exp Current Ratio Chart

Otg Exp Annual Data
Trend Dec13 Dec14
Current Ratio
0.28 1.08

Otg Exp Semi-Annual Data
Dec13 Dec14
Current Ratio 0.28 1.08

OTG vs IRGTQ, CDIF, STRZ: Current Ratio Comparison

For the Restaurants subindustry, Otg Exp'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.

Otg Exp Current Ratio vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Otg Exp's Current Ratio distribution charts can be found below:

* The bar in red indicates where Otg Exp's Current Ratio falls into.


Otg Exp 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.

Otg Exp's Current Ratio for the fiscal year that ended in Dec. 2014 is calculated as

Current Ratio (A: Dec. 2014 )=Total Current Assets (A: Dec. 2014 )/Total Current Liabilities (A: Dec. 2014 )
=52.333/48.391
=1.08

Otg Exp's Current Ratio for the quarter that ended in Dec. 2014 is calculated as

Current Ratio (Q: Dec. 2014 )=Total Current Assets (Q: Dec. 2014 )/Total Current Liabilities (Q: Dec. 2014 )
=52.333/48.391
=1.08

* 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.

Frequently Asked Questions Learn more about Current Ratio →
What does a Current Ratio of 1.08 mean?
Otg Exp (OTG) has a Current Ratio of 1.08 as of Dec. 2014.
Is Otg Exp's Current Ratio too high?
Otg Exp's current Current Ratio is 1.08. The Restaurants industry median Current Ratio is 0.99. Otg Exp's value of 1.08 is 9.1% above this industry median.
How does Otg Exp's Current Ratio compare to IRGTQ and CDIF?
Otg Exp's Current Ratio of 1.08 can be compared against companies in the Restaurants industry. The industry median Current Ratio is 0.99. Otg Exp's value of 1.08 is 9.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Restaurants company?
The median Current Ratio among Restaurants companies is 0.99, based on 365 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Otg Exp's current Current Ratio of 1.08 is 9.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Restaurants industry, the median Current Ratio is 0.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otg Exp's current Current Ratio is 1.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otg Exp stock overvalued right now?
Otg Exp (OTG) has a current Current Ratio of 1.08. The current Current Ratio is 1.08 and 9.1% above the Restaurants industry median of 0.99. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Otg Exp (OTG), the current Current Ratio is 1.08 as of Dec. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Otg Exp Business Description

Otg Exp Inc was incorporated on October 27, 2015 in Delaware. It is a travel restaurateur with operations in North America with more than 220 locations in 23 terminals across 10 airports. The Company designs, develops, operates and manages the terminal concessions programs, which refers to the programs where it either operates all of the F&B concessions or F&B and N&G concessions or have management authority over the concession program or terminal. The Company operates in the United States and Canada. It has relationships with manufacturers that deliver products directly to its concession locations. OTG's customers are comprised of two distinct groups. The first group includes airlines, such as United, Delta and JetBlue, airport operators and concession program managers. The other commercial enterprises include car rental companies, hotel chains and online shopping sites. The second group consists of the airport users, which include passengers, airline and airport employees. It competes with concession program companies, such as HMSHost Corporation, SSP Group and Hudson Group, as well as other regional and local concessionaires. The Company is subject to federal, state and local government regulations, including those relating to, among others, public health and safety, zoning and fire codes. Failure to obtain or retain food service, health permit or other licenses and approvals would adversely affect its operations.