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. King Wan's current ratio for the quarter that ended in Sep. 2023 was 0.84.
King Wan has a current ratio of 0.84. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If King Wan 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 King Wan's Current Ratio or its related term are showing as below:
SGX:554'
s Current Ratio Range Over the Past 10 Years
Min: 0.54 Med: 0.96 Max: 1.66
Current: 0.84
During the past 13 years, King Wan's highest Current Ratio was 1.66. The lowest was 0.54. And the median was 0.96.
SGX:554's Current Ratio is ranked worse than 90.75% of 1687
companies
in the Construction industry
Industry Median: 1.55
vs SGX:554: 0.84
King Wan Current Ratio Historical Data
The historical data trend for King Wan'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 King Wan's Current Ratio
For the Engineering & Construction subindustry, King Wan'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.
King Wan's Current Ratio Distribution in the Construction Industry
For the Construction industry and Industrials sector, King Wan's Current Ratio distribution charts can be found below:
* The bar in red indicates where King Wan's Current Ratio falls into.
King Wan 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.
King Wan's Current Ratio for the fiscal year that ended in Mar. 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.
King Wan (SGX:554) 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.
King Wan Current Ratio Related Terms
Thank you for viewing the detailed overview of King Wan's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
King Wan Corp Ltd engages in the provision of mechanical and electrical engineering services for the building and construction industry. It operates in five segments. The Plumbing and Sanitary segment provides services comprising the design and installation of water distribution systems and pipe networks for sewage and wastewater drainage. The electrical segment focuses on the electrical engineering services that design and install electricity distribution systems, fire protection, alarm systems, and security systems. The toilet rental segment consists of the rental and operation of mobile lavatories. The investment holding segment consists of investments in associates and joint ventures. Others segment involves other activities that do not fall into the activities of the other segments.
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