GURUFOCUS.COM » STOCK LIST » USA » NYSE » Graco Inc (NYSE:GGG) » Definitions » Current Ratio
Switch to:

Graco Current Ratio

: 3.01 (As of Jun. 2022)
View and export this data going back to 1986. Start your Free Trial

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. Graco's current ratio for the quarter that ended in Jun. 2022 was 3.01.

Graco has a current ratio of 3.01. 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 Graco's Current Ratio or its related term are showing as below:

GGG' s Current Ratio Range Over the Past 10 Years
Min: 1.36   Med: 2.2   Max: 5.47
Current: 3.01

During the past 13 years, Graco's highest Current Ratio was 5.47. The lowest was 1.36. And the median was 2.20.

GGG's Current Ratio is ranked better than
75% of 2764 companies
in the Industrial Products industry
Industry Median: 1.95 vs GGG: 3.01

Graco Current Ratio Historical Data

The historical data trend for Graco'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.

Graco Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Current Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.62 2.41 2.77 3.19 2.69

Graco Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Current Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.36 3.12 2.69 2.98 3.01

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Graco'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.

   

Graco Current Ratio Distribution

For the Industrial Products industry and Industrials sector, Graco's Current Ratio distribution charts can be found below:

* The bar in red indicates where Graco's Current Ratio falls into.



Graco 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.

Graco'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 )
=1363.621/506.792
=2.69

Graco's Current Ratio for the quarter that ended in Jun. 2022 is calculated as

Current Ratio (Q: Jun. 2022 )=Total Current Assets (Q: Jun. 2022 )/Total Current Liabilities (Q: Jun. 2022 )
=1276.476/424.058
=3.01

* 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.


Graco  (NYSE:GGG) 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.


Graco Current Ratio Related Terms

Thank you for viewing the detailed overview of Graco's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Graco Business Description

Graco logo
Traded in Other Exchanges
Address
88-11th Avenue Northeast, Minneapolis, MN, USA, 55413
Graco manufactures equipment used for managing fluids, coatings, and adhesives, specializing in difficult-to-handle materials. Graco's business is organized into three segments: industrial, process, and contractor. The Minnesota-based firm serves a wide range of end markets, including industrial, automotive, and construction, and its broad array of products include pumps, valves, meters, sprayers, and equipment used to apply coatings, sealants, and adhesives. The firm generated roughly $2 billion in sales and $531 million in operating income in 2021.
Executives
Grasdal Inge officer: EVP, Corporate Development 88 11TH AVENUE NE MINNEAPOLIS MN 55413
Gargano Anthony J officer: President, Asia Pacific 88 11TH AVENUE NE MINNEAPOLIS MN 55413
Humke Joseph J officer: Executive Vice President 88 11TH AVENUE NE MINNEAPOLIS MN 55413
Carter Brett C director 414 NICOLLET MALL, 401-9 MINNEAPOLIS MN 55401
Schoenrock Kathryn L officer: Executive Vice President 88 11TH AVENUE NE MINNEAPOLIS MN 55413
Wheeler Kevin J. director A. O. SMITH CORPORATION 500 TENNESSEE WALTZ PARKWAY ASHLAND CITY TN 37015
Wordell Angela F officer: Executive VP, Operations 88 11TH AVENUE NE MINNEAPOLIS MN 55413
White Timothy R officer: President, EMEA 88 11TH AVENUE NE MINNEAPOLIS MN 55413
White Emily director C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Feragen Jody H director 1 HORMEL PLACE AUSTIN TX 55912
O'shea Peter J officer: Vice President 88 - 11TH AVENUE N.E. MINNEAPOLIS MN 55413
Eberlein Mark D officer: Vice President 88 - 11TH AVENUE N.E. MINNEAPOLIS MN 55413
Moreau Bernard J officer: Vice President 88 - 11TH AVENUE N.E. MINNEAPOLIS MN 55413
Rothe Christian E officer: Vice President and Treasurer 88 - 11TH AVENUE N.E. MINNEAPOLIS MN 55413
Etchart Eric director ROOM F, 22F CROSS REGION PLAZA 899 LINGLING ROAD SHANGHAI F4 200030

Graco Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)