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. John Wood Group's current ratio for the quarter that ended in Jun. 2024 was 0.98.
John Wood Group has a current ratio of 0.98. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If John Wood Group has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for John Wood Group's Current Ratio or its related term are showing as below:
WDGJF'
s Current Ratio Range Over the Past 10 Years
Min: 0.75 Med: 1.05 Max: 1.67
Current: 0.98
During the past 13 years, John Wood Group's highest Current Ratio was 1.67. The lowest was 0.75. And the median was 1.05.
WDGJF's Current Ratio is ranked worse than 69.03% of 1030
companies
in the Oil & Gas industry
Industry Median: 1.375
vs WDGJF: 0.98
John Wood Group Current Ratio Historical Data
The historical data trend for John Wood Group'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 John Wood Group's Current Ratio
For the Oil & Gas Integrated subindustry, John Wood Group'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.
John Wood Group's Current Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, John Wood Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where John Wood Group'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.
John Wood Group (OTCPK:WDGJF) 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.
John Wood Group Current Ratio Related Terms
Thank you for viewing the detailed overview of John Wood Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
John Wood Group PLC is an energy services company that provides a range of engineering, production, and technical solutions across energy and materials industries. Operations are divided into four segments: The Projects segment is focused on providing front-end engineering services, procurement, and project management. The Operations segment which derives key revenue, focuses on improving operational efficiency by providing maintenance, modification, and operation services. The Consulting segment is a technical consultancy division providing advisory services, and the Investment Services manages a range of legacy or non-core businesses and investments. Geographically, the company generates revenue from the USA, Europe, and the rest of the world.
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