Nexxchange AGWBO:IPO Current Ratio is 15.37 as of Dec. 2014, which is 58% below its 10-year median of 36.54. The stock has 3 warning signs investors should review.
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. Nexxchange AG's current ratio for the quarter that ended in Dec. 2014 was 15.37.
Nexxchange AG has a current ratio of 15.37. 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 Nexxchange AG's Current Ratio or its related term are showing as below:
WBO:IPO'
s Current Ratio Range Over the Past 10 Years
Min: 0.64 Med: 36.54 Max: 63
Current: 15.37
During the past 4 years, Nexxchange AG's highest Current Ratio was 63.00. The lowest was 0.64. And the median was 36.54.
WBO:IPO's Current Ratio is not ranked
in the Asset Management industry.
Industry Median: 3.005
vs WBO:IPO: 15.37
Nexxchange AG (WBO:IPO) 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.
Nexxchange AG Current Ratio Related Terms
Nexxchange AG Current Ratio Historical Data
* Premium members only.
The historical data trend for Nexxchange AG'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.
Nexxchange AG Current Ratio Chart
Nexxchange AG Annual Data
Trend
Dec11
Dec12
Dec13
Dec14
Current Ratio
57.71
63.00
0.64
15.37
Nexxchange AG Semi-Annual Data
Dec11
Dec12
Dec13
Dec14
Current Ratio
57.71
63.00
0.64
15.37
Nexxchange AG Current Ratio Competitor Comparison
For the Asset Management subindustry, Nexxchange AG'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.
Nexxchange AG Current Ratio vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Nexxchange AG's Current Ratio distribution charts can be found below:
* The bar in red indicates where Nexxchange AG'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.
Nexxchange AG (WBO:IPO) has a Current Ratio of 15.37 as of Dec. 2014. This is 58% below median its historical median of 36.54. Over the past decade, Nexxchange AG's Current Ratio has ranged from 0.64 to 63.00.
Is Nexxchange AG's Current Ratio too high?
Nexxchange AG's current Current Ratio of 15.37 is 58% below median its 10-year median of 36.54. Over the past 10 years, this metric has ranged from a low of 0.64 to a high of 63.00. The Asset Management industry median Current Ratio is 3.01. Nexxchange AG's value of 15.37 is 411.5% above this industry median.
How does Nexxchange AG's Current Ratio compare to competitors?
Nexxchange AG's Current Ratio of 15.37 can be compared against companies in the Asset Management industry. The industry median Current Ratio is 3.01. Nexxchange AG's value of 15.37 is 411.5% above this benchmark. Historically, Nexxchange AG's own Current Ratio has ranged from 0.64 to 63.00 over the past decade. While the company's 10-year median is 36.54 vs. the industry median of 3.01, Nexxchange AG has consistently been above the industry average. 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 an Asset Management company?
The median Current Ratio among Asset Management companies is 3.01, based on 706 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. Nexxchange AG's current Current Ratio of 15.37 is 411.5% above 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 Asset Management industry, the median Current Ratio is 3.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nexxchange AG's current Current Ratio is 15.37, which is 58% below median its own 10-year median of 36.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nexxchange AG stock overvalued right now?
Nexxchange AG (WBO:IPO) has a current Current Ratio of 15.37. The current Current Ratio is 15.37, which is 58% below median its 10-year median of 36.54 and 411.5% above the Asset Management industry median of 3.01. 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 Nexxchange AG (WBO:IPO), the current Current Ratio is 15.37 as of Dec. 2014. 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.
Nexxchange AG is an investment service provider. It provides investment advice to potential investors on behalf of small companies that are planning their initial public offering.
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