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Reelcause (Reelcause) Current Ratio : 0.84 (As of Sep. 2012)


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What is Reelcause Current Ratio?

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. Reelcause's current ratio for the quarter that ended in Sep. 2012 was 0.84.

Reelcause has a current ratio of 0.84. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Reelcause has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.

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

RCIT's Current Ratio is not ranked *
in the Industrial Products industry.
Industry Median: 1.99
* Ranked among companies with meaningful Current Ratio only.

Reelcause Current Ratio Historical Data

The historical data trend for Reelcause'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.

* Premium members only.

Reelcause Current Ratio Chart

Reelcause Annual Data
Trend Oct08 Oct09 Dec10 Dec11
Current Ratio
- 37.00 0.92 0.82

Reelcause Quarterly Data
Apr08 Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12
Current Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.83 0.82 0.73 0.84 0.84

Competitive Comparison of Reelcause's Current Ratio

For the Specialty Industrial Machinery subindustry, Reelcause'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.


Reelcause's Current Ratio Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Reelcause's Current Ratio distribution charts can be found below:

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



Reelcause 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.

Reelcause's Current Ratio for the fiscal year that ended in Dec. 2011 is calculated as

Current Ratio (A: Dec. 2011 )=Total Current Assets (A: Dec. 2011 )/Total Current Liabilities (A: Dec. 2011 )
=38.242/46.402
=0.82

Reelcause's Current Ratio for the quarter that ended in Sep. 2012 is calculated as

Current Ratio (Q: Sep. 2012 )=Total Current Assets (Q: Sep. 2012 )/Total Current Liabilities (Q: Sep. 2012 )
=45.158/53.812
=0.84

* 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.


Reelcause  (OTCPK:RCIT) 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.


Reelcause Current Ratio Related Terms

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Reelcause (Reelcause) Business Description

Traded in Other Exchanges
N/A
Address
4760 S Pecos Road, Suite 103, Las Vegas, NV, USA, 89121
Reelcause Inc focuses on commercializing patented technology related to new renewable energy projects. Its Product family include hydrogen gas range, hydrogen boiler, hydrogen hot air fan, hydrogen water purifier, hydrogen water source wave, hydrogen drone, hydrogen ene farm, and realization of smart farm using hydrogen boiler.

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