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. REXAM's current ratio for the quarter that ended in Dec. 2015 was 0.98.
REXAM 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 REXAM 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 REXAM's Current Ratio or its related term are showing as below:
REXMY's Current Ratio is not ranked *
in the Packaging & Containers industry.
Industry Median: 1.79 * Ranked among companies with meaningful Current Ratio only.
REXAM Current Ratio Historical Data
The historical data trend for REXAM'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.
For the Packaging & Containers subindustry, REXAM'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.
REXAM's Current Ratio Distribution in the Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, REXAM's Current Ratio distribution charts can be found below:
* The bar in red indicates where REXAM's Current Ratio falls into.
REXAM 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.
REXAM's Current Ratio for the fiscal year that ended in Dec. 2015 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.
REXAM (OTCPK:REXMY) 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.
REXAM Current Ratio Related Terms
Thank you for viewing the detailed overview of REXAM's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
REXAM PLC was incorporated on July 13, 1923. It is a consumer packaging group and a beverage can maker. The Company is a manufacturer of beverage cans, the majority of which are made of aluminium. It makes all sorts of cans, in different shapes and sizes with different finishes, decorations and ends. It is based in the UK, and has factories across five continents. It is organised into four operating segments for Beverage Cans based on the geographical locations of Europe, AMEA (Africa, Middle East & Asia), North America and South America. For external reporting, the four operating segments for Beverage Cans are combined into two reportable segments, Americas and Europe & Rest of World. It makes a broad range of can sizes for products such as carbonated soft drinks, beer, energy drinks and other drinks categories. Beverage Cans comprise aluminium and steel cans for a variety of beverages including carbonated soft drinks, beer and energy drinks. The Company's customers include many of the world's favourite brands.
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