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. Somnigroup International's current ratio for the quarter that ended in Dec. 2024 was 1.11.
Somnigroup International has a current ratio of 1.11. It generally indicates good short-term financial strength.
The historical rank and industry rank for Somnigroup International's Current Ratio or its related term are showing as below:
SGI'
s Current Ratio Range Over the Past 10 Years
Min: 0.99 Med: 1.18 Max: 1.22
Current: 1.11
During the past 13 years, Somnigroup International's highest Current Ratio was 1.22. The lowest was 0.99. And the median was 1.18.
SGI's Current Ratio is ranked worse than 80.28% of 436
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.78
vs SGI: 1.11
Somnigroup International 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 Somnigroup International's Current Ratio
For the Furnishings, Fixtures & Appliances subindustry, Somnigroup International'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.
Somnigroup International's Current Ratio Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Somnigroup International's Current Ratio distribution charts can be found below:
* The bar in red indicates where Somnigroup International'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.
Somnigroup International (NYSE:SGI) 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.
Somnigroup International Current Ratio Related Terms
Thank you for viewing the detailed overview of Somnigroup International's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Somnigroup International Inc is a bedding company, dedicated to improving people's lives through better sleep. With superior capabilities in design, manufacturing, distribution and retail, It delivers breakthrough sleep solutions and serves the evolving needs of consumers in more than 100 countries worldwide through its fully-owned businesses, Tempur Sealy, Mattress Firm and Dreams. The company's portfolio includes the brand such as Tempur-Pedic, Sealy and Stearns & Foster, and its Multinational omnichannel platform enables the company to meet consumers wherever shop, offering a personal connection and innovation to provide a retail experience and tailored solutions.
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