TRUK (Truck Hero) Current Ratio: 1.28 (As of Jun. 2015)


What is Truck Hero Current Ratio?

Truck Hero TRUK Current Ratio is 1.28 as of Jun. 2015.

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. Truck Hero's current ratio for the quarter that ended in Jun. 2015 was 1.28.

Truck Hero has a current ratio of 1.28. It generally indicates good short-term financial strength.

The historical rank and industry rank for Truck Hero's Current Ratio or its related term are showing as below:

TRUK's Current Ratio is not ranked *
in the Vehicles & Parts industry.
Industry Median: 1.53
* Ranked among companies with meaningful Current Ratio only.

Truck Hero  (NYSE:TRUK) 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.

Truck Hero Current Ratio Related Terms

Truck Hero Current Ratio Historical Data

* Premium members only.

The historical data trend for Truck Hero'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.

Truck Hero Current Ratio Chart

Truck Hero Annual Data
Trend Dec13 Dec14
Current Ratio
1.89 2.41

Truck Hero Semi-Annual Data
Dec13 Jun14 Jun15
Current Ratio 1.89 0.00 1.28

TRUK vs IMLE, PFTI, OMTK: Current Ratio Comparison

For the Auto Parts subindustry, Truck Hero'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.

Truck Hero Current Ratio vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Truck Hero's Current Ratio distribution charts can be found below:

* The bar in red indicates where Truck Hero's Current Ratio falls into.


Truck Hero 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.

Truck Hero's Current Ratio for the fiscal year that ended in Dec. 2014 is calculated as

Current Ratio (A: Dec. 2014 )=Total Current Assets (A: Dec. 2014 )/Total Current Liabilities (A: Dec. 2014 )
=64.845/26.926
=2.41

Truck Hero's Current Ratio for the quarter that ended in Jun. 2015 is calculated as

Current Ratio (Q: Jun. 2015 )=Total Current Assets (Q: Jun. 2015 )/Total Current Liabilities (Q: Jun. 2015 )
=80.399/62.68
=1.28

* 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.

Frequently Asked Questions Learn more about Current Ratio →
What does a Current Ratio of 1.28 mean?
Truck Hero (TRUK) has a Current Ratio of 1.28 as of Jun. 2015.
Is Truck Hero's Current Ratio too high?
Truck Hero's current Current Ratio is 1.28. The Vehicles & Parts industry median Current Ratio is 1.53. Truck Hero's value of 1.28 is 16.3% below this industry median.
How does Truck Hero's Current Ratio compare to IMLE and PFTI?
Truck Hero's Current Ratio of 1.28 can be compared against companies in the Vehicles & Parts industry. The industry median Current Ratio is 1.53. Truck Hero's value of 1.28 is 16.3% below this benchmark. 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 Vehicles & Parts company?
The median Current Ratio among Vehicles & Parts companies is 1.53, based on 1,337 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. Truck Hero's current Current Ratio of 1.28 is 16.3% 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 Vehicles & Parts industry, the median Current Ratio is 1.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Truck Hero's current Current Ratio is 1.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Truck Hero stock overvalued right now?
Truck Hero (TRUK) has a current Current Ratio of 1.28. The current Current Ratio is 1.28 and 16.3% below the Vehicles & Parts industry median of 1.53. 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 Truck Hero (TRUK), the current Current Ratio is 1.28 as of Jun. 2015. 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.

Truck Hero Business Description

Truck Hero Inc was incorporated in Delaware in November 2007. The Company designs, manufactures and markets consumer accessories for pickup trucks. It offers a portfolio of branded and private label truck bed covers and accessories that include truck bed covers, truck caps, and bed liners custom-made fiberglass and aluminum truck caps and fiberglass truck bed covers to consumer and commercial markets and a line of retractable aluminum slat and hard-rolling truck bed covers, as well as bed rails and storage boxes. It also sells third party branded vehicle accessories online, which include floor mats, grill guards, steps, tool boxes, and towing product. The Company competes with the companies that manufacture and retail accessory and appearance products. It is subject to governmental laws and regulations.