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. Homeinns Hotel Group's current ratio for the quarter that ended in Sep. 2015 was 0.64.
Homeinns Hotel Group has a current ratio of 0.64. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Homeinns Hotel Group 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 Homeinns Hotel Group's Current Ratio or its related term are showing as below:
HMIN's Current Ratio is not ranked *
in the Travel & Leisure industry.
Industry Median: 1.33 * Ranked among companies with meaningful Current Ratio only.
Homeinns Hotel Group Current Ratio Historical Data
The historical data trend for Homeinns Hotel Group'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.
For the Lodging subindustry, Homeinns Hotel Group'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.
Homeinns Hotel Group Current Ratio Distribution
For the Travel & Leisure industry and Consumer Cyclical sector, Homeinns Hotel Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Homeinns Hotel Group's Current Ratio falls into.
Homeinns Hotel Group 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.
Homeinns Hotel Group's Current Ratio for the fiscal year that ended in Dec. 2014 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.
Homeinns Hotel Group (NAS:HMIN) 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.
Homeinns Hotel Group Current Ratio Related Terms
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Homeinns Hotel Group (Homeinns Hotel Group) Business Description
Homeinns Hotel Group was incorporated in the Cayman Islands on May 2006. The Company develops and operates economy hotels across China under its "Home Inn", "Yitel" and its recently acquired "Motel 168" brands. As of December 31, 2013, the Company had 2,180 hotels in operation, including 872 leased-and-operated hotels and 1,308 franchised-and-managed hotels, with approximately 256,555 rooms located in 287 cities across China, and an additional 161 hotels under development. It competes with other economy hotel chains, such as Jinjiang Star, 7 Days Inn, Han Ting, Green Tree Inn and Super 8, as well as various regional and local economy hotel chains.
Homeinns Hotel Group (Homeinns Hotel Group) Headlines
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