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. Nippon Gas Co's current ratio for the quarter that ended in Dec. 2023 was 1.18.
Nippon Gas Co has a current ratio of 1.18. It generally indicates good short-term financial strength.
The historical rank and industry rank for Nippon Gas Co's Current Ratio or its related term are showing as below:
NPPGF'
s Current Ratio Range Over the Past 10 Years
Min: 0.55 Med: 1 Max: 1.41
Current: 1.18
During the past 13 years, Nippon Gas Co's highest Current Ratio was 1.41. The lowest was 0.55. And the median was 1.00.
NPPGF's Current Ratio is ranked better than 57.45% of 517
companies
in the Utilities - Regulated industry
Industry Median: 1.05
vs NPPGF: 1.18
Nippon Gas Co Current Ratio Historical Data
The historical data trend for Nippon Gas Co'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 Nippon Gas Co's Current Ratio
For the Utilities - Regulated Gas subindustry, Nippon Gas Co'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.
Nippon Gas Co's Current Ratio Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Nippon Gas Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Nippon Gas Co's Current Ratio falls into.
Nippon Gas Co 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.
Nippon Gas Co's Current Ratio for the fiscal year that ended in Mar. 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.
Nippon Gas Co (GREY:NPPGF) 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.
Nippon Gas Co Current Ratio Related Terms
Thank you for viewing the detailed overview of Nippon Gas Co's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Nippon Gas Co (Nippon Gas Co) Business Description
Nippon Gas Co Ltd, or Nichigas, is a Japanese supplier of gas primarily in the Kanto region of Japan. The company segments its operations into LP Gas, City Gas, Electricity, and Life Products Businesses. LP Gas and City Gas are Nichigas' core segments, which engage in the distribution and sale of liquefied petroleum gas, or LPG, and city gas for consumer usage. The company's total revenue is split between sales of LPG and city gas, with LPG generating slightly more. Roughly half of Nichigas' customers are residential consumers in terms of sales volume, while the other half are commercial entities. With its subsidiaries, the company is also involved in the distribution and sale of liquefied natural gas, high-pressure gas, and gas appliances.
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