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R.R.Donnelley & Sons Co  (NYSE:RRD) Current Ratio: 1.54 (As of Jun. 2017)

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. R.R.Donnelley & Sons Co's current ratio for the quarter that ended in Jun. 2017 was 1.54.

R.R.Donnelley & Sons Co has a current ratio of 1.54. It generally indicates good short-term financial strength.

NYSE:RRD' s Current Ratio Range Over the Past 10 Years
Min: 0.78   Max: 2.05
Current: 1.54

0.78
2.05

During the past 13 years, R.R.Donnelley & Sons Co's highest Current Ratio was 2.05. The lowest was 0.78. And the median was 1.45.

NYSE:RRD's Current Ratio is ranked lower than
53% of the 681 Companies
in the Global industry.

( Industry Median: 1.60 vs. NYSE:RRD: 1.54 )

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

R.R.Donnelley & Sons Co Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Current Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.45 1.60 1.42 1.33 1.62

R.R.Donnelley & Sons Co Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 1.22 1.49 1.62 1.51 1.54

Competitive Comparison
* 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.


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.

R.R.Donnelley & Sons Co's Current Ratio for the fiscal year that ended in Dec. 2016

Current Ratio (A: Dec. 2016 )=Total Current Assets (A: Dec. 2016 )/Total Current Liabilities (A: Dec. 2016 )
=2516.9/1551.1
=1.62

R.R.Donnelley & Sons Co's Current Ratio for the quarter that ended in Jun. 2017 is calculated as

Current Ratio (Q: Jun. 2017 )=Total Current Assets (Q: Jun. 2017 )/Total Current Liabilities (Q: Jun. 2017 )
=2062.5/1340.4
=1.54

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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.


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