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. The Real Good Food Co's current ratio for the quarter that ended in Sep. 2023 was 1.56.
The Real Good Food Co has a current ratio of 1.56. It generally indicates good short-term financial strength.
The historical rank and industry rank for The Real Good Food Co's Current Ratio or its related term are showing as below:
RGFC's Current Ratio is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 1.73 * Ranked among companies with meaningful Current Ratio only.
The Real Good Food Co (OTCPK:RGFC) 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.
The Real Good Food Co Current Ratio Related Terms
The Real Good Food Co Current Ratio Historical Data
* Premium members only.
The historical data trend for The Real Good Food Co'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.
RGFC vs PLAG, NAII, FARM: Current Ratio Comparison
For the Packaged Foods subindustry, The Real Good Food Co'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.
The Real Good Food Co Current Ratio vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Real Good Food Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where The Real Good Food Co's Current Ratio falls into.
* 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.
The Real Good Food Co (RGFC) has a Current Ratio of 1.56 as of Sep. 2023.
Is The Real Good Food Co's Current Ratio too high?
The Real Good Food Co's current Current Ratio is 1.56. The Consumer Packaged Goods industry median Current Ratio is 1.73. The Real Good Food Co's value of 1.56 is 9.8% below this industry median. Overall, The Real Good Food Co has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does The Real Good Food Co's Current Ratio compare to PLAG and NAII?
The Real Good Food Co's Current Ratio of 1.56 can be compared against companies in the Consumer Packaged Goods industry. The industry median Current Ratio is 1.73. The Real Good Food Co's value of 1.56 is 9.8% below 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 Consumer Packaged Goods company?
The median Current Ratio among Consumer Packaged Goods companies is 1.73, based on 1,988 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. The Real Good Food Co's current Current Ratio of 1.56 is 9.8% below 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 Consumer Packaged Goods industry, the median Current Ratio is 1.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Real Good Food Co's current Current Ratio is 1.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Real Good Food Co stock overvalued right now?
The Real Good Food Co (RGFC) has a current Current Ratio of 1.56. The current Current Ratio is 1.56 and 9.8% below the Consumer Packaged Goods industry median of 1.73. The Real Good Food Co's overall GF Score™ is 14/100. 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 The Real Good Food Co (RGFC), the current Current Ratio is 1.56 as of Sep. 2023. 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.
The Real Good Food Co Inc is a frozen food company that develops, markets, and manufactures foods high in protein, low in sugar, and gluten- and grain-free. The company produces breakfast sandwiches, entrees, and other products, primarily sold in the U.S. frozen food category. All of its revenue is derived from the United States.
14GF Score
Get the complete analysis for RGFC
Current Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
RGFC has been successfully added to your 
