GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Henkel AG & Co KGaA (WBO:HEN) » Definitions » Current Ratio

Henkel AG KGaA (WBO:HEN) Current Ratio

: 1.20 (As of Dec. 2023)
View and export this data going back to 2017. Start your Free Trial

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. Henkel AG KGaA's current ratio for the quarter that ended in Dec. 2023 was 1.20.

Henkel AG KGaA has a current ratio of 1.20. It generally indicates good short-term financial strength.

The historical rank and industry rank for Henkel AG KGaA's Current Ratio or its related term are showing as below:

WBO:HEN' s Current Ratio Range Over the Past 10 Years
Min: 0.96   Med: 1.12   Max: 1.22
Current: 1.2

During the past 13 years, Henkel AG KGaA's highest Current Ratio was 1.22. The lowest was 0.96. And the median was 1.12.

WBO:HEN's Current Ratio is ranked worse than
69.51% of 1902 companies
in the Consumer Packaged Goods industry
Industry Median: 1.65 vs WBO:HEN: 1.20

Henkel AG KGaA Current Ratio Historical Data

The historical data trend for Henkel AG KGaA'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.

* Premium members only.

Henkel AG KGaA Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Current Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.07 1.11 1.12 1.14 1.20

Henkel AG KGaA Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 1.12 1.04 1.14 1.12 1.20

Competitive Comparison

For the Household & Personal Products subindustry, Henkel AG KGaA'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.


Henkel AG KGaA Current Ratio Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Henkel AG KGaA's Current Ratio distribution charts can be found below:

* The bar in red indicates where Henkel AG KGaA's Current Ratio falls into.



Henkel AG KGaA 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.

Henkel AG KGaA's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Current Ratio (A: Dec. 2023 )=Total Current Assets (A: Dec. 2023 )/Total Current Liabilities (A: Dec. 2023 )
=9282/7758
=1.20

Henkel AG KGaA's Current Ratio for the quarter that ended in Dec. 2023 is calculated as

Current Ratio (Q: Dec. 2023 )=Total Current Assets (Q: Dec. 2023 )/Total Current Liabilities (Q: Dec. 2023 )
=9282/7758
=1.20

* 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.


Henkel AG KGaA  (WBO:HEN) 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.


Henkel AG KGaA Current Ratio Related Terms

Thank you for viewing the detailed overview of Henkel AG KGaA's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Henkel AG KGaA (WBO:HEN) Business Description

Address
Henkelstrasse 67, Duesseldorf, NW, DEU, 40589
Two distinct customer groups constitute Henkel. The consumer segment (around 50% of consolidated 2022 sales) is laundry and home care, including the Persil and Purex laundry detergent brands, and beauty care, including the Schwarzkopf brand in hair care and the Dial brand in hand soap. The adhesives technologies segment makes up the remaining 50% of sales. Sales from Europe accounted for 42% of the firm's consolidated total in 2022, while Asia-Pacific and North America accounted for 17% and 27%, respectively.

Henkel AG KGaA (WBO:HEN) Headlines

No Headlines