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. PT Sinar Eka Selaras Tbk's current ratio for the quarter that ended in Dec. 2023 was 3.40.
PT Sinar Eka Selaras Tbk has a current ratio of 3.40. 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 PT Sinar Eka Selaras Tbk's Current Ratio or its related term are showing as below:
ISX:ERAL'
s Current Ratio Range Over the Past 10 Years
Min: 1.74 Med: 3.08 Max: 5.45
Current: 3.4
During the past 4 years, PT Sinar Eka Selaras Tbk's highest Current Ratio was 5.45. The lowest was 1.74. And the median was 3.08.
ISX:ERAL's Current Ratio is ranked better than 85.1% of 1121
companies
in the Retail - Cyclical industry
Industry Median: 1.59
vs ISX:ERAL: 3.40
PT Sinar Eka Selaras Tbk Current Ratio Historical Data
* 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.
* Premium members only.
PT Sinar Eka Selaras Tbk Current Ratio Chart
PT Sinar Eka Selaras Tbk Annual Data
Trend
Dec20
Dec21
Dec22
Dec23
Current Ratio
1.74
5.45
2.76
3.40
PT Sinar Eka Selaras Tbk Semi-Annual Data
Dec20
Dec21
Dec22
Dec23
Current Ratio
1.74
5.45
2.76
3.40
Competitive Comparison of PT Sinar Eka Selaras Tbk's Current Ratio
For the Specialty Retail subindustry, PT Sinar Eka Selaras Tbk'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.
PT Sinar Eka Selaras Tbk's Current Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, PT Sinar Eka Selaras Tbk's Current Ratio distribution charts can be found below:
* The bar in red indicates where PT Sinar Eka Selaras Tbk's Current Ratio falls into.
PT Sinar Eka Selaras Tbk 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.
PT Sinar Eka Selaras Tbk'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.
PT Sinar Eka Selaras Tbk (ISX:ERAL) 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.
PT Sinar Eka Selaras Tbk Current Ratio Related Terms
Thank you for viewing the detailed overview of PT Sinar Eka Selaras Tbk's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
PT Sinar Eka Selaras Tbk (ISX:ERAL) Business Description
PT Sinar Eka Selaras Tbk is a company engaged in the end-to-end retail products trading business that focuses on computers and electronic equipment as well as clothing for several brands in Indonesia. It focuses on sales of lifestyle-related products such as accessories, Internet of Things (IoT), sports fashion apparel, as well as other outdoor activity-related products with a variety of stores, from multi-brand concepts like Urban Republic & JD Sports stores to mono-brand concepts like Asics, DJI, Garmin, and other several brands. Its vision is to become an active lifestyle company and a mission to provide innovative solutions and outstanding services through a world-class active lifestyle product portfolio, supported by the Omni-Channel Network spread throughout the country.
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