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. Big Tree Carbon's current ratio for the quarter that ended in Sep. 2024 was 0.03.
Big Tree Carbon has a current ratio of 0.03. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Big Tree Carbon 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 Big Tree Carbon's Current Ratio or its related term are showing as below:
TBMIF'
s Current Ratio Range Over the Past 10 Years
Min: 0.02 Med: 0.08 Max: 1.96
Current: 0.03
During the past 13 years, Big Tree Carbon's highest Current Ratio was 1.96. The lowest was 0.02. And the median was 0.08.
TBMIF's Current Ratio is ranked worse than 95.51% of 2627
companies
in the Metals & Mining industry
Industry Median: 1.86
vs TBMIF: 0.03
Big Tree Carbon Current Ratio Historical Data
The historical data trend for Big Tree Carbon'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 Big Tree Carbon's Current Ratio
For the Gold subindustry, Big Tree Carbon'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.
Big Tree Carbon's Current Ratio Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Big Tree Carbon's Current Ratio distribution charts can be found below:
* The bar in red indicates where Big Tree Carbon'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.
Big Tree Carbon (OTCPK:TBMIF) 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.
Big Tree Carbon Current Ratio Related Terms
Thank you for viewing the detailed overview of Big Tree Carbon's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Big Tree Carbon Inc is engaged in the investigation, acquisition, exploration and development of exploration and evaluation assets and energy assets in Ontario, Canada. It is also involved in building on the company's long-standing relations with First Nations in Northwestern Ontario to assist in financing future exploration activities by assessing the potential of forests within the traditional territories of these First Nations to capture and sequester carbon dioxide for the development of Greenhouse Gas offsets and other potential environmental attributes, and to explore the monetization of these offsets and attributes for the benefit of these First Nations and the company.
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