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. Dairibord Holdings's current ratio for the quarter that ended in Dec. 2022 was 1.24.
Dairibord Holdings has a current ratio of 1.24. It generally indicates good short-term financial strength.
The historical rank and industry rank for Dairibord Holdings's Current Ratio or its related term are showing as below:
XZIM:DZL.ZW's Current Ratio is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 1.66 * Ranked among companies with meaningful Current Ratio only.
Dairibord Holdings Current Ratio Historical Data
The historical data trend for Dairibord Holdings'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 Dairibord Holdings's Current Ratio
For the Packaged Foods subindustry, Dairibord Holdings'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.
Dairibord Holdings's Current Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Dairibord Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Dairibord Holdings's Current Ratio falls into.
Dairibord Holdings 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.
Dairibord Holdings's Current Ratio for the fiscal year that ended in Dec. 2022 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.
Dairibord Holdings (XZIM:DZL.ZW) 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.
Dairibord Holdings Current Ratio Related Terms
Thank you for viewing the detailed overview of Dairibord Holdings's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Dairibord Holdings (XZIM:DZL.ZW) Business Description
Dairibord Holdings Ltd manufactures, processes, markets, and distributes milk products, foods, and beverages in Zimbabwe. It operates through Manufacturing and Distribution (Zimbabwe), Corporate, and Properties segments. The company generates maximum revenue from the Manufacturing and Distribution segment. It offers various products, including liquid milk products, such as short and long shelf life, cultured, and cream milk products; food products comprising yoghurts, ice creams, cheese, ice cream cone shells, condiments, spreads, sauces, butter, and ghee; and beverages, which include cordials, ready to drink dairy and non-dairy beverages, teas, mineral water, juices, and drinking chocolate.
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