![]() 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. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. The higher the current ratio, the more capable the company is of paying its obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.Īcceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses. 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. 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. Payments to Suppliers for Goods and ServicesĪIM ImmunoTech (AMEX:AIM) Current Ratio Explanation.Other Cash Receipts from Operating Activities.Other Cash Payments from Operating Activities.Cash Received from Insurance Activities.Cash Receipts from Securities Related Activities.Cash Receipts from Operating Activities.Cash Receipts from Fees and Commissions.Cash Receipts from Deposits by Banks and Customers.Cash Payments for Deposits by Banks and Customers.Cash from Discontinued Operating Activities.Cash From Discontinued Investing Activities.Short-Term Debt & Capital Lease Obligation.Other Liabilities for Insurance Companies. ![]() Long-Term Debt & Capital Lease Obligation.Inventories, Raw Materials & Components.Cash, Cash Equivalents, Marketable Securities.Accumulated other comprehensive income (loss).Accounts Payable & Accrued Expense for Financial Companies.Depreciation, Depletion and Amortization.Margin of Safety % (DCF Dividends Based).Margin of Safety % (DCF Earnings Based).Float Percentage Of Total Shares Outstanding. ![]()
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