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. Radiant Opto-Electronics's current ratio for the quarter that ended in Sep. 2024 was 2.99.
Radiant Opto-Electronics has a current ratio of 2.99. It generally indicates good short-term financial strength.
The historical rank and industry rank for Radiant Opto-Electronics's Current Ratio or its related term are showing as below:
TPE:6176'
s Current Ratio Range Over the Past 10 Years
Min: 1.46 Med: 1.81 Max: 2.99
Current: 2.99
During the past 13 years, Radiant Opto-Electronics's highest Current Ratio was 2.99. The lowest was 1.46. And the median was 1.81.
TPE:6176's Current Ratio is ranked better than 71.42% of 2470
companies
in the Hardware industry
Industry Median: 2.02
vs TPE:6176: 2.99
Radiant Opto-Electronics Current Ratio Historical Data
* 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 Radiant Opto-Electronics's Current Ratio
For the Electronic Components subindustry, Radiant Opto-Electronics'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.
Radiant Opto-Electronics's Current Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Radiant Opto-Electronics's Current Ratio distribution charts can be found below:
* The bar in red indicates where Radiant Opto-Electronics's Current Ratio falls into.
Radiant Opto-Electronics 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.
Radiant Opto-Electronics'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.
Radiant Opto-Electronics (TPE:6176) 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.
Radiant Opto-Electronics Current Ratio Related Terms
Thank you for viewing the detailed overview of Radiant Opto-Electronics's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Radiant Opto-Electronics Corp is a Taiwan-based company that is principally engaged in designing, manufacturing, assembling, and marketing backlight modules and light guide plates for liquid crystal display panels. The Group has three reportable segments: the domestic, Mainland China, and other operations segment. The domestic segment engages in the manufacture and sale of light guide plates, backlight modules for LCDs, and lighting component. The Mainland China segment which generates key revenue, uses the technologies provided by the domestic segment to develop new designs of products according to the demands of various customers. Geographically, the majority of the revenue for the company is generated from Asia and rest from Europe and America.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TPE:6176 has been successfully added to your 