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. Embark Early Education's current ratio for the quarter that ended in Dec. 2023 was 1.94.
Embark Early Education has a current ratio of 1.94. It generally indicates good short-term financial strength.
The historical rank and industry rank for Embark Early Education's Current Ratio or its related term are showing as below:
ASX:EVO'
s Current Ratio Range Over the Past 10 Years
Min: 0.17 Med: 1.18 Max: 1.94
Current: 1.94
During the past 8 years, Embark Early Education's highest Current Ratio was 1.94. The lowest was 0.17. And the median was 1.18.
ASX:EVO's Current Ratio is ranked better than 67.16% of 268
companies
in the Education industry
Industry Median: 1.29
vs ASX:EVO: 1.94
Embark Early Education Current Ratio Historical Data
* 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 Embark Early Education's Current Ratio
For the Education & Training Services subindustry, Embark Early Education'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.
Embark Early Education's Current Ratio Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, Embark Early Education's Current Ratio distribution charts can be found below:
* The bar in red indicates where Embark Early Education's Current Ratio falls into.
Embark Early Education 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.
Embark Early Education'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.
Embark Early Education (ASX:EVO) 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.
Embark Early Education Current Ratio Related Terms
Thank you for viewing the detailed overview of Embark Early Education's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Embark Early Education (ASX:EVO) Business Description
Embark Early Education Ltd is a company that is engaged in the provision and management of an early childhood education service that gives parents and caregivers the option of which service suits their child's learning and care needs. The Group reports operating segments by geographical location, namely New Zealand and Australia. The majority of revenue is from the New Zealand segment. The principal activities of the Company include the management of high-quality early childhood education centres.
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