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. American Education Center's current ratio for the quarter that ended in Jun. 2021 was 0.28.
American Education Center has a current ratio of 0.28. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If American Education Center 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 American Education Center's Current Ratio or its related term are showing as below:
AMCT's Current Ratio is not ranked *
in the Business Services industry.
Industry Median: 1.71 * Ranked among companies with meaningful Current Ratio only.
American Education Center Current Ratio Historical Data
The historical data trend for American Education Center'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 American Education Center's Current Ratio
For the Consulting Services subindustry, American Education Center'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.
American Education Center's Current Ratio Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, American Education Center's Current Ratio distribution charts can be found below:
* The bar in red indicates where American Education Center's Current Ratio falls into.
American Education Center 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.
American Education Center'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.
American Education Center (OTCPK:AMCT) 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.
American Education Center Current Ratio Related Terms
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American Education Center (American Education Center) Business Description
American Education Center Inc is a United States-based company engaged in the providing of consulting services. Its Consulting services include Placement Advisory Services, Career Advisory Services, Student & Family Advisory Services, and Other Advisory Services. The company operates in two segments namely AEC New York segment and AEC BVI segment. The majority of the revenue is generated from the AEC New York segment which capitalizes middle-class families in China for quality education and works experiences in the United States( US) and delivers customized high school and college placement and career advisory services to Chinese students wishing to study in the US.
American Education Center (American Education Center) Headlines
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