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. Cardinal Ethanol LLC's current ratio for the quarter that ended in Dec. 2023 was 2.75.
Cardinal Ethanol LLC has a current ratio of 2.75. It generally indicates good short-term financial strength.
The historical rank and industry rank for Cardinal Ethanol LLC's Current Ratio or its related term are showing as below:
CRDE'
s Current Ratio Range Over the Past 10 Years
Min: 1.52 Med: 2.95 Max: 4.84
Current: 2.75
During the past 13 years, Cardinal Ethanol LLC's highest Current Ratio was 4.84. The lowest was 1.52. And the median was 2.95.
CRDE's Current Ratio is not ranked
in the Chemicals industry.
Industry Median: 1.965
vs CRDE: 2.75
Cardinal Ethanol LLC Current Ratio Historical Data
The historical data trend for Cardinal Ethanol LLC'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 Cardinal Ethanol LLC's Current Ratio
For the Chemicals subindustry, Cardinal Ethanol LLC'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.
Cardinal Ethanol LLC's Current Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Cardinal Ethanol LLC's Current Ratio distribution charts can be found below:
* The bar in red indicates where Cardinal Ethanol LLC's Current Ratio falls into.
Cardinal Ethanol LLC 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.
Cardinal Ethanol LLC's Current Ratio for the fiscal year that ended in Sep. 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.
Cardinal Ethanol LLC (OTCPK:CRDE) 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.
Cardinal Ethanol LLC Current Ratio Related Terms
Thank you for viewing the detailed overview of Cardinal Ethanol LLC's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Cardinal Ethanol LLC (Cardinal Ethanol LLC) Business Description
Cardinal Ethanol LLC is a producer and seller of fuel-grade ethanol, distiller's grains, corn oil, and carbon dioxide throughout the continent of the United States. The company's prime selling products include ethanol, dried distillers grains, corn oil, and carbon dioxide. Its two operating segments are ethanol production through the Ethanol Division; and trading of agricultural grains through the Trading Division. The revenues from Ethanol Division come from primary sources: sales of fuel ethanol which is the key revenue driver. Revenues from the Trading Division are derived from procuring, transporting, and selling grain commodities. The majority of the revenue for the company is generated from its Ethanol Division.
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