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. Electro-Sensors's current ratio for the quarter that ended in Dec. 2023 was 19.04.
Electro-Sensors has a current ratio of 19.04. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Electro-Sensors's Current Ratio or its related term are showing as below:
ELSE'
s Current Ratio Range Over the Past 10 Years
Min: 11.33 Med: 19.46 Max: 22.24
Current: 19.04
During the past 13 years, Electro-Sensors's highest Current Ratio was 22.24. The lowest was 11.33. And the median was 19.46.
ELSE's Current Ratio is ranked better than 98.55% of 2484
companies
in the Hardware industry
Industry Median: 2.045
vs ELSE: 19.04
Electro-Sensors Current Ratio Historical Data
The historical data trend for Electro-Sensors'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 Electro-Sensors's Current Ratio
For the Scientific & Technical Instruments subindustry, Electro-Sensors'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.
Electro-Sensors's Current Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Electro-Sensors's Current Ratio distribution charts can be found below:
* The bar in red indicates where Electro-Sensors's Current Ratio falls into.
Electro-Sensors 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.
Electro-Sensors's Current Ratio for the fiscal year that ended in Dec. 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.
Electro-Sensors (NAS:ELSE) 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.
Electro-Sensors Current Ratio Related Terms
Thank you for viewing the detailed overview of Electro-Sensors's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Electro-Sensors (Electro-Sensors) Business Description
Electro-Sensors Inc is engaged in manufacturing and selling a variety of monitoring systems that measure actual machine production and operation rates, as well as systems that regulate the speed of related machines in production processes. Its speed monitoring systems compare revolutions per minute or speed against acceptable rates as determined by a customer. It also includes a line of products that measure production counts or rates, such as parts, gallons, or board feet, alarm systems, tachometers, and other devices that translate impulses from the sensors into alarm signals, computer inputs, or digital displays that are usable by the customer.
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