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. Godo Steel's current ratio for the quarter that ended in Sep. 2024 was 1.70.
Godo Steel has a current ratio of 1.70. It generally indicates good short-term financial strength.
The historical rank and industry rank for Godo Steel's Current Ratio or its related term are showing as below:
TSE:5410'
s Current Ratio Range Over the Past 10 Years
Min: 1.07 Med: 1.32 Max: 1.7
Current: 1.7
During the past 13 years, Godo Steel's highest Current Ratio was 1.70. The lowest was 1.07. And the median was 1.32.
TSE:5410's Current Ratio is ranked better than 51.56% of 642
companies
in the Steel industry
Industry Median: 1.67
vs TSE:5410: 1.70
Godo Steel Current Ratio Historical Data
The historical data trend for Godo Steel'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 Godo Steel's Current Ratio
For the Steel subindustry, Godo Steel'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.
Godo Steel's Current Ratio Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Godo Steel's Current Ratio distribution charts can be found below:
* The bar in red indicates where Godo Steel's Current Ratio falls into.
Godo Steel 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.
Godo Steel's Current Ratio for the fiscal year that ended in Mar. 2024 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.
Godo Steel (TSE:5410) 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.
Godo Steel Current Ratio Related Terms
Thank you for viewing the detailed overview of Godo Steel's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Godo Steel Ltd manufactures and sells steel products in Japan and internationally. The company offers wire rods for tire chains, stapler needles, and fencing applications; large and middle shapes that are used in construction, civil engineering, and other sectors; structural bars, which are used as materials for making parts of construction and industrial machinery, ships, and other equipment; and rails. It also provides deformed bars that are used as construction and civil engineering materials; EG joints and anchor plates; and billets. In addition, the company offers reinforcing bars, wire products, firebricks, and ballasts; trucking services; and industrial waste disposal services.
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