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. East Star Resources's current ratio for the quarter that ended in Dec. 2023 was 6.65.
East Star Resources has a current ratio of 6.65. 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 East Star Resources's Current Ratio or its related term are showing as below:
STU:5MM'
s Current Ratio Range Over the Past 10 Years
Min: 6.63 Med: 12.51 Max: 13.94
Current: 6.63
During the past 3 years, East Star Resources's highest Current Ratio was 13.94. The lowest was 6.63. And the median was 12.51.
STU:5MM's Current Ratio is ranked better than 63.3% of 534
companies
in the Diversified Financial Services industry
Industry Median: 1.265
vs STU:5MM: 6.63
East Star Resources Current Ratio Historical Data
The historical data trend for East Star Resources'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 East Star Resources's Current Ratio
For the Shell Companies subindustry, East Star Resources'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.
East Star Resources's Current Ratio Distribution in the Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, East Star Resources's Current Ratio distribution charts can be found below:
* The bar in red indicates where East Star Resources's Current Ratio falls into.
East Star Resources 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.
East Star Resources's Current Ratio for the fiscal year that ended in Dec. 2023 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.
East Star Resources (STU:5MM) 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.
East Star Resources Current Ratio Related Terms
Thank you for viewing the detailed overview of East Star Resources's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
East Star Resources (STU:5MM) Business Description
East Star Resources PLC is exploring gold, copper, and rare earths in Kazakhstan. The principal activity of the Company is of identifying potential companies, businesses or asset/(s) that have operations in the natural resources exploration, development, and production sector.
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