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. Willis Lease Finance's current ratio for the quarter that ended in Dec. 2023 was 3.74.
Willis Lease Finance has a current ratio of 3.74. 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 Willis Lease Finance's Current Ratio or its related term are showing as below:
WLFC'
s Current Ratio Range Over the Past 10 Years
Min: 3.21 Med: 4.06 Max: 8.5
Current: 3.74
During the past 13 years, Willis Lease Finance's highest Current Ratio was 8.50. The lowest was 3.21. And the median was 4.06.
WLFC's Current Ratio is ranked better than 82.75% of 1078
companies
in the Business Services industry
Industry Median: 1.72
vs WLFC: 3.74
Willis Lease Finance Current Ratio Historical Data
The historical data trend for Willis Lease Finance'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 Willis Lease Finance's Current Ratio
For the Rental & Leasing Services subindustry, Willis Lease Finance'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.
Willis Lease Finance's Current Ratio Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Willis Lease Finance's Current Ratio distribution charts can be found below:
* The bar in red indicates where Willis Lease Finance's Current Ratio falls into.
Willis Lease Finance 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.
Willis Lease Finance's Current Ratio for the fiscal year that ended in Dec. 2023 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.
Willis Lease Finance (NAS:WLFC) 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.
Willis Lease Finance Current Ratio Related Terms
Thank you for viewing the detailed overview of Willis Lease Finance's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Willis Lease Finance (Willis Lease Finance) Business Description
Willis Lease Finance Corp with its subsidiaries is a lessor and servicer of commercial aircraft and aircraft engines. The company has two reportable business segments namely Leasing and Related Operations which involves acquiring and leasing, pursuant to operating leases, commercial aircraft, aircraft engines and other aircraft equipment and the selective purchase and resale of commercial aircraft engines and other aircraft equipment and other related businesses and Spare Parts Sales segment involves the purchase and resale of after-market engine parts, whole engines, engine modules and portable aircraft components.
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