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. Hanwa Co's current ratio for the quarter that ended in Dec. 2023 was 1.90.
Hanwa Co has a current ratio of 1.90. It generally indicates good short-term financial strength.
The historical rank and industry rank for Hanwa Co's Current Ratio or its related term are showing as below:
TSE:8078'
s Current Ratio Range Over the Past 10 Years
Min: 1.03 Med: 1.61 Max: 1.89
Current: 1.89
During the past 13 years, Hanwa Co's highest Current Ratio was 1.89. The lowest was 1.03. And the median was 1.61.
TSE:8078's Current Ratio is ranked better than 63.67% of 534
companies
in the Conglomerates industry
Industry Median: 1.545
vs TSE:8078: 1.89
Hanwa Co Current Ratio Historical Data
The historical data trend for Hanwa Co'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 Hanwa Co's Current Ratio
For the Conglomerates subindustry, Hanwa Co'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.
Hanwa Co's Current Ratio Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hanwa Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Hanwa Co's Current Ratio falls into.
Hanwa Co 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.
Hanwa Co's Current Ratio for the fiscal year that ended in Mar. 2024 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.
Hanwa Co (TSE:8078) 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.
Hanwa Co Current Ratio Related Terms
Thank you for viewing the detailed overview of Hanwa Co's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Hanwa Co Ltd is a Japan-based trading company with seven segments. The steel segment handles steel products and building materials. The metals and alloys segment supplies chromium, manganese, and other metals. The nonferrous metals segment recycles aluminum, copper, nickel, and chromium. The food products segment handles seafood. The petroleum and chemicals segment trades petroleum products and others. The overseas sales subsidiaries segment comprises Hanwa's overseas subsidiaries in North America and Asia. The other business segment imports forest products and handles amusement facilities and industrial machinery. Steel, petroleum and chemicals, and metals and alloys are the three largest segments by revenue contribution. Hanwa generates most of its revenue from Japanese domestic market.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TSE:8078 has been successfully added to your 