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British American Tobacco Current Ratio

: 0.73 (As of Jun. 2019)
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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. British American Tobacco's current ratio for the quarter that ended in Jun. 2019 was 0.73.

British American Tobacco has a current ratio of 0.73. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If British American Tobacco has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.

NYSE:BTI' s Current Ratio Range Over the Past 10 Years
Min: 0.65   Max: 1.4
Current: 0.73

0.65
1.4

During the past 13 years, British American Tobacco's highest Current Ratio was 1.40. The lowest was 0.65. And the median was 1.09.

NYSE:BTI's Current Ratio is ranked lower than
91% of the 35 Companies
in the Tobacco Products industry.

( Industry Median: 1.80 vs. NYSE:BTI: 0.73 )

British American Tobacco Current Ratio Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

British American Tobacco Annual Data
Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Current Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.04 1.09 1.04 0.89 0.78

British American Tobacco Semi-Annual Data
Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19
Current Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.87 0.89 0.81 0.78 0.73

Competitive Comparison
* 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.


British American Tobacco Current Ratio Distribution

* The bar in red indicates where British American Tobacco's Current Ratio falls into.



British American Tobacco 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.

British American Tobacco's Current Ratio for the fiscal year that ended in Dec. 2018

Current Ratio (A: Dec. 2018 )=Total Current Assets (A: Dec. 2018 )/Total Current Liabilities (A: Dec. 2018 )
=16018.9873418/20669.6202532
=0.78

British American Tobacco's Current Ratio for the quarter that ended in Jun. 2019 is calculated as

Current Ratio (Q: Jun. 2019 )=Total Current Assets (Q: Jun. 2019 )/Total Current Liabilities (Q: Jun. 2019 )
=18271.2294043/25086.1850444
=0.73

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


British American Tobacco  (NYSE:BTI) 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.


British American Tobacco Current Ratio Related Terms


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