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. Nissan Motor Co's current ratio for the quarter that ended in Dec. 2023 was 1.75.
Nissan Motor Co has a current ratio of 1.75. It generally indicates good short-term financial strength.
The historical rank and industry rank for Nissan Motor Co's Current Ratio or its related term are showing as below:
NSANY'
s Current Ratio Range Over the Past 10 Years
Min: 1.32 Med: 1.62 Max: 1.8
Current: 1.75
During the past 13 years, Nissan Motor Co's highest Current Ratio was 1.80. The lowest was 1.32. And the median was 1.62.
NSANY's Current Ratio is ranked better than 59.45% of 1307
companies
in the Vehicles & Parts industry
Industry Median: 1.53
vs NSANY: 1.75
Nissan Motor Co Current Ratio Historical Data
The historical data trend for Nissan Motor 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.
For the Auto Manufacturers subindustry, Nissan Motor 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.
Nissan Motor Co Current Ratio Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, Nissan Motor Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Nissan Motor Co's Current Ratio falls into.
Nissan Motor 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.
Nissan Motor 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.
Nissan Motor Co (OTCPK:NSANY) 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.
Nissan Motor Co Current Ratio Related Terms
Thank you for viewing the detailed overview of Nissan Motor Co's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Nissan Motor Co (Nissan Motor Co) Business Description
While Nissan sold 3.3 million vehicles last fiscal year, total calendar 2022 Renault-Nissan-Mitsubishi alliance sales volume of 6.5 million vehicles makes the group the fourth-largest vehicle seller in the world, behind Toyota at 10.3 million, Volkswagen at 8.5 million, and Hyundai/Kia with 6.8 million vehicles sold. Nissan's financial services subsidiary provides consumers with auto loans and leases but also finances Nissan's sales to its dealerships (known as floor-plan financing). Nissan is 43.4% owned by Renault, while Nissan in turn owns 15% of Renault. Nissan also owns a 34% stake in Mitsubishi Motors. Under a new alliance agreement expected to be completed before the end of December 2023, Nissan and Renault will have cross-shareholding capped at 15% voting rights for each company.
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