What is Rheon Automatic Machinery Co Current Ratio?
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. Rheon Automatic Machinery Co's current ratio for the quarter that ended in Dec. 2023 was 3.26.
Rheon Automatic Machinery Co has a current ratio of 3.26. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Rheon Automatic Machinery Co's Current Ratio or its related term are showing as below:
TSE:6272'
s Current Ratio Range Over the Past 10 Years
Min: 2.09 Med: 2.54 Max: 3.77
Current: 3.77
During the past 13 years, Rheon Automatic Machinery Co's highest Current Ratio was 3.77. The lowest was 2.09. And the median was 2.54.
TSE:6272's Current Ratio is ranked better than 80.62% of 3029
companies
in the Industrial Products industry
Industry Median: 2
vs TSE:6272: 3.77
Rheon Automatic Machinery Co 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 Rheon Automatic Machinery Co's Current Ratio
For the Specialty Industrial Machinery subindustry, Rheon Automatic Machinery Co'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.
Rheon Automatic Machinery Co's Current Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Rheon Automatic Machinery Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Rheon Automatic Machinery Co's Current Ratio falls into.
Rheon Automatic Machinery Co 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.
* 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.
Rheon Automatic Machinery Co (TSE:6272) 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.
Rheon Automatic Machinery Co Current Ratio Related Terms
Thank you for viewing the detailed overview of Rheon Automatic Machinery Co's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Rheon Automatic Machinery Co (TSE:6272) Business Description
Rheon Automatic Machinery Co Ltd is a Japanese company engaged in developing, manufacturing and supplying a wide range of food processing machines, and factory systems. It develops fully automated croissant production line and automatic filled product machine. The entity sells its products in Japan, and also exports it to other countries. It offers products like encrusting machines and bread production line. The encrusting machines produce confectionery, bread and prepared products, whereas the products produced by bread production line are croissant, Danish pastry, puff pastry, loaf bread, and pizza, among other products. The equipment portfolio of the company includes equipment for encrusting, bread production, cornucopia, meat processing, pizza production, robot arm, and others.
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