GURUFOCUS.COM » STOCK LIST » Technology » Hardware » FDS Networks Group Ltd. (SGX:F07) » Definitions » Current Ratio

FDS Networks Group (SGX:F07) Current Ratio : 4.05 (As of Jun. 2013)


View and export this data going back to . Start your Free Trial

What is FDS Networks Group 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. FDS Networks Group's current ratio for the quarter that ended in Jun. 2013 was 4.05.

FDS Networks Group has a current ratio of 4.05. 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 FDS Networks Group's Current Ratio or its related term are showing as below:

SGX:F07's Current Ratio is not ranked *
in the Hardware industry.
Industry Median: 2.02
* Ranked among companies with meaningful Current Ratio only.

FDS Networks Group Current Ratio Historical Data

The historical data trend for FDS Networks Group'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.

FDS Networks Group Current Ratio Chart

FDS Networks Group Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
Current Ratio
Get a 7-Day Free Trial 2.19 3.11 2.37 1.79 1.15

FDS Networks Group Semi-Annual Data
Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13
Current Ratio Get a 7-Day Free Trial 2.45 1.79 1.64 1.15 4.05

Competitive Comparison of FDS Networks Group's Current Ratio

For the Communication Equipment subindustry, FDS Networks Group'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.


FDS Networks Group's Current Ratio Distribution in the Hardware Industry

For the Hardware industry and Technology sector, FDS Networks Group's Current Ratio distribution charts can be found below:

* The bar in red indicates where FDS Networks Group's Current Ratio falls into.



FDS Networks Group 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.

FDS Networks Group's Current Ratio for the fiscal year that ended in Dec. 2012 is calculated as

Current Ratio (A: Dec. 2012 )=Total Current Assets (A: Dec. 2012 )/Total Current Liabilities (A: Dec. 2012 )
=3.252/2.84
=1.15

FDS Networks Group's Current Ratio for the quarter that ended in Jun. 2013 is calculated as

Current Ratio (Q: Jun. 2013 )=Total Current Assets (Q: Jun. 2013 )/Total Current Liabilities (Q: Jun. 2013 )
=2.54/0.627
=4.05

* 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.


FDS Networks Group  (SGX:F07) 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.


FDS Networks Group Current Ratio Related Terms

Thank you for viewing the detailed overview of FDS Networks Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


FDS Networks Group (SGX:F07) Business Description

Traded in Other Exchanges
N/A
Address
FDS Networks Group Ltd., is incorporated in Bermuda. The Company is an investment holding company. The Company operates in four segments namely Network system integration, Distribution of networking products, Provision of technical services, and Asset management. The Network system integration segment designs and implements integrated telecommunication and/or data communication networks. Distribution of networking products segment is involved in the distribution of networking and communications hardware products covers cables, adapters, modems, multiplexers, routers, switches, frame relay products and security encryption products. Provision of technical services segment relates to after-sales technical support and services pursuant to agreed maintenance contracts. Asset management segment relates to activities on investments in quoted equities instruments.

FDS Networks Group (SGX:F07) Headlines

No Headlines