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. Krispy Kreme's current ratio for the quarter that ended in Mar. 2022 was 0.30.
Krispy Kreme has a current ratio of 0.30. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Krispy Kreme 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 Krispy Kreme's Current Ratio or its related term are showing as below:
DNUT'
s Current Ratio Range Over the Past 10 Years
Min: 0.14 Med: 0.31 Max: 0.34
Current: 0.3
During the past 4 years, Krispy Kreme's highest Current Ratio was 0.34. The lowest was 0.14. And the median was 0.31.
DNUT's Current Ratio is ranked worse than 98.01% of 302
companies
in the Retail - Defensive industry
Industry Median: 1.34
vs DNUT: 0.30
Krispy Kreme Current Ratio Historical Data
The historical data trend for Krispy Kreme'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.
* Premium members only.
Krispy Kreme Annual Data
Trend
Dec18
Dec19
Dec20
Dec21
Current Ratio
-
0.31
0.33
0.30
Krispy Kreme Quarterly Data
Dec18
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Current Ratio
0.34
0.14
0.33
0.30
0.30
Competitive Comparison
For the Grocery Stores subindustry, Krispy Kreme'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.
Krispy Kreme Current Ratio Distribution
For the Retail - Defensive industry and Consumer Defensive sector, Krispy Kreme's Current Ratio distribution charts can be found below:
* The bar in red indicates where Krispy Kreme's Current Ratio falls into.
Krispy Kreme 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.
Krispy Kreme's Current Ratio for the fiscal year that ended in Dec. 2021
* 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.
Krispy Kreme (NAS:DNUT) 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.
Krispy Kreme Current Ratio Related Terms
Thank you for viewing the detailed overview of Krispy Kreme's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Krispy Kreme Inc is a sweet treat brands company. The company's Original Glazed doughnut is recognized for its hot-off-the-line, melt-in- your-mouth experience. It operates in 30 countries through its network of fresh Doughnut Shops, partnerships with retailers, and a growing ecommerce and delivery business. The company conducts its business through the following three reported segments namely U.S. and Canada, includes all operations in the U.S. and Canada, Insomnia Cookies shops, and the Branded Sweet Treat Line; International includes operations in the U.K., Ireland, Australia, New Zealand, and Mexico; and Market Development includes franchise operations across the globe, as well as operations in Japan.
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