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. AGL Resources's current ratio for the quarter that ended in Mar. 2016 was 0.62.
AGL Resources has a current ratio of 0.62. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If AGL Resources 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 AGL Resources's Current Ratio or its related term are showing as below:
GAS's Current Ratio is not ranked *
in the Utilities - Regulated industry.
Industry Median: 1.05 * Ranked among companies with meaningful Current Ratio only.
AGL Resources Current Ratio Historical Data
The historical data trend for AGL Resources'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 AGL Resources's Current Ratio
For the Utilities - Regulated Gas subindustry, AGL Resources'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.
AGL Resources's Current Ratio Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, AGL Resources's Current Ratio distribution charts can be found below:
* The bar in red indicates where AGL Resources's Current Ratio falls into.
AGL Resources 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.
AGL Resources'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.
AGL Resources (NYSE:GAS) 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.
AGL Resources Current Ratio Related Terms
Thank you for viewing the detailed overview of AGL Resources's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
AGL Resources (AGL Resources) Business Description
AGL Resources Inc was incorporated on November 27, 1995 under the laws of the State of Georgia. It is an energy services holding company. The Company is engaged in the distribution of natural gas in seven states; Illinois, Georgia, Virginia, New Jersey, Florida, Tennessee and Maryland through its seven natural gas distribution utilities. The Company's business segments are Distribution Operations, Retail Operations, Wholesale Services and Midstream Operations. The distribution operations segment includes seven natural gas local distribution utilities with a focus of providing safe and reliable delivery of natural gas. The retail operations segment serves natural gas commodity customers and service contracts. The wholesale services segment is engaged in asset management and optimization, storage, transportation, producer and peaking services and wholesale marketing of natural gas across the U.S. and Canada. Wholesale services utilizes a portfolio of natural gas storage assets, contracted supply from all of the main producing regions, as well as contracted storage and transportation capacity to provide these services to its customers. The midstream operations segment includes a number of businesses that are related and complementary to its primary business. The Company competes with electric utilities and fuel oil and propane providers serving the residential, commercial and industrial markets and natural gas facilities. The Company's business is subject to substantial regulation by federal, state and local regulatory authorities.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
GAS has been successfully added to your 