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. Wright Medical Group's current ratio for the quarter that ended in Jun. 2015 was 3.16.
Wright Medical Group has a current ratio of 3.16. 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 Wright Medical Group's Current Ratio or its related term are showing as below:
FRA:WM3'
s Current Ratio Range Over the Past 10 Years
Min: 1.87 Med: 4.18 Max: 8.53
Current: 3.16
During the past 13 years, Wright Medical Group's highest Current Ratio was 8.53. The lowest was 1.87. And the median was 4.18.
FRA:WM3's Current Ratio is not ranked
in the Medical Devices & Instruments industry.
Industry Median: 2.72
vs FRA:WM3: 3.16
Wright Medical Group Current Ratio Historical Data
The historical data trend for Wright Medical Group'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 Wright Medical Group's Current Ratio
For the Medical Devices subindustry, Wright Medical Group'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.
Wright Medical Group's Current Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Wright Medical Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Wright Medical Group's Current Ratio falls into.
Wright Medical Group 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.
Wright Medical Group'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.
Wright Medical Group (FRA:WM3) 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.
Wright Medical Group Current Ratio Related Terms
Thank you for viewing the detailed overview of Wright Medical Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Wright Medical Group (FRA:WM3) Business Description
Wright Medical Group Inc, through Wright Medical Technology, Inc. and other operating subsidiaries, is a specialty orthopaedic company, that provides extremity and biologic solutions that enable clinicians to alleviate pain and restore their patients' lifestyles. The Company provides surgical solutions for the foot and ankle market and markets its products in over 60 countries. Its business includes products that are used in foot and ankle repair, upper extremity products, and biologics products, which are used to replace damaged or diseased bone, to stimulate bone growth and to provide other biological solutions for surgeons and their patients. Extremity hardware includes implants and other devices to replace or reconstruct injured or diseased joints and bones of the foot, ankle, hand, wrist, fingers, toes, elbow and shoulder, which it generally refer to as either foot and ankle or upper extremity products. The Company's manufacturing and warehousing operations are located in Arlington, Tennessee. Outside the U.S., The Company has distribution and administrative facilities in Amsterdam, the Netherlands, and sales and distribution offices in Canada, Australia, and Europe. The Company operates its continuing operations as one reportable segment and offer products in extremity reconstruction and biologics. The Company's products include CHARLOTTE, CLAW II, DARCO, EVOLVE, MICRONAIL, GRAFTJACKET, OSTEOSET. Its competitors include major companies in the orthopaedic and biologics industries, as well as academic institutions and other public and private research organizations that continue to conduct research, seek patent protection and establish arrangements for commercializing products. The Company's products are strictly regulated by the FDA under the Food, Drug, and Cosmetic Act. Some of its products are also regulated by state agencies.
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