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. Party City Holdco's current ratio for the quarter that ended in Sep. 2022 was 0.99.
Party City Holdco has a current ratio of 0.99. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Party City Holdco 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 Party City Holdco's Current Ratio or its related term are showing as below:
PRTYQ's Current Ratio is not ranked *
in the Retail - Cyclical industry.
Industry Median: 1.59 * Ranked among companies with meaningful Current Ratio only.
Party City Holdco Current Ratio Historical Data
The historical data trend for Party City Holdco'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 Party City Holdco's Current Ratio
For the Specialty Retail subindustry, Party City Holdco'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.
Party City Holdco's Current Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Party City Holdco's Current Ratio distribution charts can be found below:
* The bar in red indicates where Party City Holdco's Current Ratio falls into.
Party City Holdco 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.
Party City Holdco's Current Ratio for the fiscal year that ended in Dec. 2021 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.
Party City Holdco (OTCPK:PRTYQ) 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.
Party City Holdco Current Ratio Related Terms
Thank you for viewing the detailed overview of Party City Holdco's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Party City Holdco (Party City Holdco) Business Description
Party City Holdco Inc is a party goods retailer in North America that operates owned and franchised locations in the us, Canada, and Puerto Rico. Party City also sells internationally in countries like the UK, France, Germany, and Australia, among others. The company has two primary reporting segments: retail and wholesale. The retail operations sell through Anagram, Amscan, Designware, Costumes USA, and other party suppliers, such as Party City, Halloween City, and PartyCity.com. The wholesale segment sells party goods such as paper and plastic tableware, accessories and novelties, balloons, stationery, and gift items for all occasions. These products are sold by franchise stores, mass merchants, independent card and gift shops, dollar stores, and other retailers and global distributors.
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