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. Metalico's current ratio for the quarter that ended in Jun. 2015 was 0.98.
Metalico has a current ratio of 0.98. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Metalico 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 Metalico's Current Ratio or its related term are showing as below:
FRA:MT5'
s Current Ratio Range Over the Past 10 Years
Min: 0.98 Med: 2.55 Max: 5.39
Current: 0.98
During the past 13 years, Metalico's highest Current Ratio was 5.39. The lowest was 0.98. And the median was 2.55.
FRA:MT5's Current Ratio is not ranked
in the Industrial Products industry.
Industry Median: 1.985
vs FRA:MT5: 0.98
Metalico Current Ratio Historical Data
The historical data trend for Metalico'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 Metalico's Current Ratio
For the Metal Fabrication subindustry, Metalico'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.
Metalico's Current Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Metalico's Current Ratio distribution charts can be found below:
* The bar in red indicates where Metalico's Current Ratio falls into.
Metalico 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.
Metalico's Current Ratio for the fiscal year that ended in Dec. 2014 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.
Metalico (FRA:MT5) 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.
Metalico Current Ratio Related Terms
Thank you for viewing the detailed overview of Metalico's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Metalico Inc was originally organized as a Delaware corporation in August 1997. The Company along with its subsidiaries operates in two distinct business segments; scrap metal recycling and lead metal product fabricating. The Companys operating facilities include thirty-one scrap metal recycling facilities, including a combined aluminum de-oxidizing plant and four lead product manufacturing and fabricating plants. In the Scrap Metal Recycling segment, its operations mainly involves the collection and processing of ferrous and non-ferrous metals. It collects industrial and obsolete scrap metal, process it into reusable forms and supply the recycled metals to its consumers that include electric arc furnace mills, integrated steel mills, foundries, secondary smelters, aluminum recyclers and metal brokers. The Company acquires unprocessed scrap metals mainly in its local and regional markets and sells to consumers nationally and in Canada as well as to exporters and international brokers. Some of the metal commodities it recycles include steel, copper, aluminum, stainless steel, molybdenum, tantalum, platinum, lead and many others. In Lead Fabricating segment, through four physical operations located in three states, the Company consumes approximately 40 to 45 million pounds of lead metal per year that are utilized in more than one hundred different base products. Its products are sold nationally into diverse industries such as roofing, plumbing, radiation shielding for pharmaceutical and power generation, electronic solders, ammunition, automotive, Department of Defense contractors, and others. The Company sells its lead fabrications nationally. Products are sold to distributors, wholesalers, the plumbing and building trades, equipment manufacturers and other consumers. Its lead fabrication facilities compete against two fabricators of similar, but limited products based in the Southwest who distribute nationally and several smaller regional producers of similar products. To a lesser extent, it also competes against products imported from South America, Canada, Europe and Asia. The Company is subject to comprehensive and frequently changing Federal, state and local laws and regulations.
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