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. Arcadia Biosciences's current ratio for the quarter that ended in Dec. 2023 was 4.17.
Arcadia Biosciences has a current ratio of 4.17. 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 Arcadia Biosciences's Current Ratio or its related term are showing as below:
RKDA'
s Current Ratio Range Over the Past 10 Years
Min: 1.66 Med: 5.53 Max: 16.69
Current: 4.17
During the past 12 years, Arcadia Biosciences's highest Current Ratio was 16.69. The lowest was 1.66. And the median was 5.53.
RKDA's Current Ratio is ranked better than 86.05% of 1907
companies
in the Consumer Packaged Goods industry
Industry Median: 1.66
vs RKDA: 4.17
Arcadia Biosciences Current Ratio Historical Data
The historical data trend for Arcadia Biosciences'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 Arcadia Biosciences's Current Ratio
For the Packaged Foods subindustry, Arcadia Biosciences'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.
Arcadia Biosciences's Current Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Arcadia Biosciences's Current Ratio distribution charts can be found below:
* The bar in red indicates where Arcadia Biosciences's Current Ratio falls into.
Arcadia Biosciences 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.
Arcadia Biosciences's Current Ratio for the fiscal year that ended in Dec. 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.
Arcadia Biosciences (NAS:RKDA) 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.
Arcadia Biosciences Current Ratio Related Terms
Thank you for viewing the detailed overview of Arcadia Biosciences's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Arcadia Biosciences (Arcadia Biosciences) Business Description
Arcadia Biosciences Inc is a producer and marketer of innovative, plant-based food and beverage products. It is engaged in science-based approaches to developing high-value crop improvements primarily in wheat, soy, and hemp, designed to enhance farm economics by improving the performance of crops in the field, as well as their value as food ingredients, health, and wellness products, and their viability for industrial applications. The company's consumer brands in the food, beverage, and body care categories include GoodWheat high-fiber pasta, Zola coconut water, ProVault topical pain relief, and SoulSpring bath and body care.
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