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. Loop Industries's current ratio for the quarter that ended in Nov. 2023 was 6.74.
Loop Industries has a current ratio of 6.74. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Loop Industries's Current Ratio or its related term are showing as below:
LOOP'
s Current Ratio Range Over the Past 10 Years
Min: 0.05 Med: 4.29 Max: 20.53
Current: 6.74
During the past 13 years, Loop Industries's highest Current Ratio was 20.53. The lowest was 0.05. And the median was 4.29.
LOOP's Current Ratio is ranked better than 91.84% of 1569
companies
in the Chemicals industry
Industry Median: 1.97
vs LOOP: 6.74
Loop Industries Current Ratio Historical Data
The historical data trend for Loop Industries'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 Loop Industries's Current Ratio
For the Specialty Chemicals subindustry, Loop Industries'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.
Loop Industries's Current Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Loop Industries's Current Ratio distribution charts can be found below:
* The bar in red indicates where Loop Industries's Current Ratio falls into.
Loop Industries 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.
Loop Industries's Current Ratio for the fiscal year that ended in Feb. 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.
Loop Industries (NAS:LOOP) 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.
Loop Industries Current Ratio Related Terms
Thank you for viewing the detailed overview of Loop Industries's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Loop Industries (Loop Industries) Business Description
Loop Industries Inc is a technology and licensing company whose mission is to accelerate the world's shift toward sustainable plastic and away from dependence on fossil fuels. The company owns patented and proprietary technology that depolymerizes no and low value waste PET plastic and polyester fiber, including plastic bottles and packaging, carpet and polyester textile of any color, transparency or condition and even ocean plastics that have been degraded by the sun and salt, to its base building blocks (monomers). Its monomers are filtered, purified and repolymerized to create virgin-quality Loop branded PET plastic resin and polyester fiber suitable for use in food-grade packaging to be sold to consumer goods companies to help them meet their sustainability objectives.
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