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Digital World Acquisition Current Ratio

: 0.13 (As of Mar. 2022)
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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. Digital World Acquisition's current ratio for the quarter that ended in Mar. 2022 was 0.13.

Digital World Acquisition has a current ratio of 0.13. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Digital World Acquisition 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 Digital World Acquisition's Current Ratio or its related term are showing as below:

DWAC' s Current Ratio Range Over the Past 10 Years
Min: 0.13   Med: 0.4   Max: 6.99
Current: 0.13

During the past 2 years, Digital World Acquisition's highest Current Ratio was 6.99. The lowest was 0.13. And the median was 0.40.

DWAC's Current Ratio is ranked worse than
84.97% of 785 companies
in the Diversified Financial Services industry
Industry Median: 1.23 vs DWAC: 0.13

Digital World Acquisition Current Ratio Historical Data

The historical data trend for Digital World Acquisition'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.

Digital World Acquisition Annual Data
Trend Dec20 Dec21
Current Ratio
- 0.83

Digital World Acquisition Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22
Current Ratio 0.40 0.24 6.99 0.83 0.13

Competitive Comparison

For the Shell Companies subindustry, Digital World Acquisition'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.

   

Digital World Acquisition Current Ratio Distribution

For the Diversified Financial Services industry and Financial Services sector, Digital World Acquisition's Current Ratio distribution charts can be found below:

* The bar in red indicates where Digital World Acquisition's Current Ratio falls into.



Digital World Acquisition 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.

Digital World Acquisition's Current Ratio for the fiscal year that ended in Dec. 2021

Current Ratio (A: Dec. 2021 )=Total Current Assets (A: Dec. 2021 )/Total Current Liabilities (A: Dec. 2021 )
=0.569/0.684
=0.83

Digital World Acquisition's Current Ratio for the quarter that ended in Mar. 2022 is calculated as

Current Ratio (Q: Mar. 2022 )=Total Current Assets (Q: Mar. 2022 )/Total Current Liabilities (Q: Mar. 2022 )
=0.282/2.252
=0.13

* 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.


Digital World Acquisition  (NAS:DWAC) 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.


Digital World Acquisition Current Ratio Related Terms

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Digital World Acquisition Business Description

Digital World Acquisition logo
Industry
Traded in Other Exchanges
Address
78 SW 7th Street, Miami, FL, USA, 33130
Website
Digital World Acquisition Corp is a blank check company.
Executives
Barclays Plc 10 percent owner 1 CHURCHILL PLACE CANARY WHARF LONDON X0 E14 5HP
Orlando Patrick Francis director, 10 percent owner, officer: CEO and Chairman 212 E 48TH STREET - PHB NEW YORK NY 10017
Shaner Justin director 2000 S BAYSHORE DR UNIT 20 MIAMI FL 33133
Swider Eric director 2000 S BAYSHORE DR UNIT 20 MIAMI FL 33133
Veloso Rodrigo director 78 SW 7TH STREET MIAMI FL 33130
Garelick Bruce J. director 78 SW 7TH STREET MIAMI FL 33130
Montie Jacobson director 78 SW 7TH STREET MIAMI FL 33130
Orleans-braganza Luiz officer: Chief Financial Officer 78 SW 7TH STREET MIAMI FL 33130
Arc Global Investments Ii Llc 10 percent owner 78 SW 7TH STREET MIAMI FL 33130

Digital World Acquisition Headlines

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