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. Cineworld Group's current ratio for the quarter that ended in Jun. 2022 was 0.14.
Cineworld Group has a current ratio of 0.14. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Cineworld Group has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Cineworld Group's Current Ratio or its related term are showing as below:
CNWGQ's Current Ratio is not ranked *
in the Media - Diversified industry.
Industry Median: 1.62 * Ranked among companies with meaningful Current Ratio only.
Cineworld Group Current Ratio Historical Data
The historical data trend for Cineworld Group'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 Cineworld Group's Current Ratio
For the Entertainment subindustry, Cineworld Group'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.
Cineworld Group's Current Ratio Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Cineworld Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Cineworld Group's Current Ratio falls into.
Cineworld Group 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.
Cineworld Group's Current Ratio for the fiscal year that ended in Dec. 2021 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.
Cineworld Group (OTCPK:CNWGQ) 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.
Cineworld Group Current Ratio Related Terms
Thank you for viewing the detailed overview of Cineworld Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Cineworld Group (Cineworld Group) Business Description
Cineworld Group PLC is a diversified media company, which operates chains of movie theaters. Its business segments are the U.S., U.K., & Ireland and the rest of the world (ROW). Within each segment, it operates theaters through different brands. In the U.S., Cineworld owns cinema brands Regal, United Artists, and Edwards theaters. They operate out of Cineworld and Picturehouse in the U.K. and Ireland. Cineworld also owns Cinema City in Central and Eastern Europe and Yes Planet and Rav-Chen in Israel for its ROW segment. The company generates revenue through ticket sales and food, beverage, and merchandise sales. It also earns additional revenue through retail and screen advertising and property market and development. The company generates most of its revenue in the U.S.
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