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. Leaf Group's current ratio for the quarter that ended in Mar. 2021 was 1.65.
Leaf Group has a current ratio of 1.65. It generally indicates good short-term financial strength.
The historical rank and industry rank for Leaf Group's Current Ratio or its related term are showing as below:
LEAF'
s Current Ratio Range Over the Past 10 Years
Min: 0.74 Med: 1.57 Max: 4.23
Current: 1.65
During the past 13 years, Leaf Group's highest Current Ratio was 4.23. The lowest was 0.74. And the median was 1.57.
LEAF's Current Ratio is not ranked
in the Interactive Media industry.
Industry Median: 2.095
vs LEAF: 1.65
Leaf Group Current Ratio Historical Data
The historical data trend for Leaf Group'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 Leaf Group's Current Ratio
For the Internet Content & Information subindustry, Leaf Group'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.
Leaf Group's Current Ratio Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Leaf Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Leaf Group's Current Ratio falls into.
Leaf Group 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.
Leaf Group's Current Ratio for the fiscal year that ended in Dec. 2020 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.
Leaf Group (NYSE:LEAF) 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.
Leaf Group Current Ratio Related Terms
Thank you for viewing the detailed overview of Leaf Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Leaf Group Ltd is a diversified consumer internet company that builds enduring, creator-driven brands that reach passionate audiences in large and growing lifestyle categories, including fitness and wellness and home, art and design. The company operates in three segments: Society6 Group, Saatchi Art Group, and Media Group. Society6 Group is made-to-order marketplace business and includes Society6.com and its wholesale channel. Saatchi Art Group which includes SaatchiArt.com and its complementary art fair event brand, The Other Art Fair which is online art gallery with a focus on emerging artists. Its Media Group segment consists of a diverse portfolio of media properties that educate and inform consumers on a broad range of topics.
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