Rok StarsSTU:RKS Current Ratio is 0.74 as of Dec. 2018, which is 11% below its 10-year median of 0.83. The stock has 7 warning signs investors should review.
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. Rok Stars's current ratio for the quarter that ended in Dec. 2018 was 0.74.
Rok Stars has a current ratio of 0.74. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Rok Stars 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 Rok Stars's Current Ratio or its related term are showing as below:
STU:RKS'
s Current Ratio Range Over the Past 10 Years
Min: 0.72 Med: 0.83 Max: 1.64
Current: 0.74
During the past 8 years, Rok Stars's highest Current Ratio was 1.64. The lowest was 0.72. And the median was 0.83.
STU:RKS's Current Ratio is not ranked
in the Beverages - Alcoholic industry.
Industry Median: 1.8
vs STU:RKS: 0.74
Rok Stars (STU:RKS) 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.
Rok Stars Current Ratio Related Terms
Rok Stars Current Ratio Historical Data
* Premium members only.
The historical data trend for Rok Stars'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.
For the Beverages - Brewers subindustry, Rok Stars'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.
Rok Stars Current Ratio vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Rok Stars's Current Ratio distribution charts can be found below:
* The bar in red indicates where Rok Stars'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.
Rok Stars (STU:RKS) has a Current Ratio of 0.74 as of Dec. 2018. This is 11% below median its historical median of 0.83. Over the past decade, Rok Stars' Current Ratio has ranged from 0.72 to 1.64.
Is Rok Stars' Current Ratio too high?
Rok Stars' current Current Ratio of 0.74 is 11% below median its 10-year median of 0.83. Over the past 10 years, this metric has ranged from a low of 0.72 to a high of 1.64. The Beverages - Alcoholic industry median Current Ratio is 1.80. Rok Stars' value of 0.74 is 58.9% below this industry median.
How does Rok Stars' Current Ratio compare to competitors?
Rok Stars' Current Ratio of 0.74 can be compared against companies in the Beverages - Alcoholic industry. The industry median Current Ratio is 1.80. Rok Stars' value of 0.74 is 58.9% below this benchmark. Historically, Rok Stars' own Current Ratio has ranged from 0.72 to 1.64 over the past decade. While the company's 10-year median is 0.83 vs. the industry median of 1.80, Rok Stars has consistently been below the industry average. 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 Beverages - Alcoholic company?
The median Current Ratio among Beverages - Alcoholic companies is 1.80, based on 213 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. Rok Stars's current Current Ratio of 0.74 is 58.9% 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 Beverages - Alcoholic industry, the median Current Ratio is 1.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rok Stars's current Current Ratio is 0.74, which is 11% below median its own 10-year median of 0.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rok Stars stock overvalued right now?
Based on GuruFocus' analysis, Rok Stars (STU:RKS) is currently considered Possible Value Trap. The current Current Ratio is 0.74, which is 11% below median its 10-year median of 0.83 and 58.9% below the Beverages - Alcoholic industry median of 1.80. 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 Rok Stars (STU:RKS), the current Current Ratio is 0.74 as of Dec. 2018. 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.
Rok Stars PLC, through its subsidiaries, is engaged in the production and distribution of alcoholic and non-alcoholic drinks. The company is also engaged in the sale and distribution of cosmetics, beauty and eco-friendly products. The group distributes and promotes Gin, Vodka, and Rum that is branded with the image and signature of the American film actor Humphrey Bogart. It generates most of its revenue from Beverages.
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