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. Cheil Industries's current ratio for the quarter that ended in Mar. 2016 was 0.80.
Cheil Industries has a current ratio of 0.80. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Cheil Industries 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 Cheil Industries's Current Ratio or its related term are showing as below:
XKRX:001300'
s Current Ratio Range Over the Past 10 Years
Min: 0.8 Med: 1.25 Max: 1.96
Current: 0.8
During the past 3 years, Cheil Industries's highest Current Ratio was 1.96. The lowest was 0.80. And the median was 1.25.
XKRX:001300's Current Ratio is not ranked
in the Chemicals industry.
Industry Median: 1.95
vs XKRX:001300: 0.80
Cheil Industries Current Ratio Historical Data
The historical data trend for Cheil Industries'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 Cheil Industries's Current Ratio
For the Chemicals subindustry, Cheil Industries'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.
Cheil Industries's Current Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Cheil Industries's Current Ratio distribution charts can be found below:
* The bar in red indicates where Cheil Industries's Current Ratio falls into.
Cheil Industries 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.
Cheil Industries's Current Ratio for the fiscal year that ended in Dec. 2015 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.
Cheil Industries (XKRX:001300) 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.
Cheil Industries Current Ratio Related Terms
Thank you for viewing the detailed overview of Cheil Industries's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Cheil Industries (XKRX:001300) Business Description
Samsung C&T Corp was founded in 1938. The Company was formed from the merger of Samsung C&T Corporation ('Samsung C&T') and Cheil Industries Inc. The Company operates four business including engineering & construction, trading & investment, fashion and resort & construction. In the engineering & construction business it provides services including planning, design, purchasing, construction and management of buildings, civil infrastructure, power plants and housing & developments. The Company's trading & investment business includes trading of industrial commodities such as chemicals, steel and natural resources, and organizing projects such as power plant, renewable energy and infrastructure development. The Company also trades chemicals and industrial materials including fertilizer, mining chemicals, methanol and electronic materials, steel products including hot rolled steel, plate and automotive steel, and natural resources including coal and copper. It also operates palm plantation. The Company's fashion business is engaged in manufacturing and designing fashion products and offers brands including 8 Seconds, 10 Corso Como Seoul, Aann Demeulemeester, Beanpole Men, Beanpole Ladies, Beanpole Kids, Beanpole Golf, Beanpole Accessory, Beanpole Outdoor, Balmain, Beaker, Colombo, Comme Des Garcons, Galaxy, Giuseppe Zanotti, Kuho, Lansmere, Lebeige and Valextra. The Company's resort business is engaged in operating Everland & Caribbean Bay resorts and Golf Clubs; and also engaged in construction, plant, and landscaping businesses.
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