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. Hybrid Power Solutions's current ratio for the quarter that ended in Nov. 2024 was 0.98.
Hybrid Power Solutions 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 Hybrid Power Solutions 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 Hybrid Power Solutions's Current Ratio or its related term are showing as below:
XCNQ:HPSS'
s Current Ratio Range Over the Past 10 Years
Min: 0.44 Med: 0.63 Max: 1.67
Current: 0.98
During the past 4 years, Hybrid Power Solutions's highest Current Ratio was 1.67. The lowest was 0.44. And the median was 0.63.
XCNQ:HPSS's Current Ratio is ranked worse than 90.73% of 3030
companies
in the Industrial Products industry
Industry Median: 1.99
vs XCNQ:HPSS: 0.98
Hybrid Power Solutions 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 Hybrid Power Solutions's Current Ratio
For the Electrical Equipment & Parts subindustry, Hybrid Power Solutions'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.
Hybrid Power Solutions's Current Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hybrid Power Solutions's Current Ratio distribution charts can be found below:
* The bar in red indicates where Hybrid Power Solutions'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.
Hybrid Power Solutions (XCNQ:HPSS) 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.
Hybrid Power Solutions Current Ratio Related Terms
Thank you for viewing the detailed overview of Hybrid Power Solutions's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Hybrid Power Solutions Inc is a Canadian clean energy company specializing in producing, developing, and installing direct-to-consumer clean technology products such as portable power packs and stationary energy storage. It mainly designs and manufactures patent-pending portable battery systems and customized energy solutions for a variety of industrial markets, including the mining, railway, public transit, and construction sectors. It also has a franchise network of solar power installers that operate under the Company's trademark and offer the sale and installation of the Company's products. Geographically, the company operates in Canada; Revenue is generated in three geographical markets, being Canada, United States and Netherlands.
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