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. Advantage Solutions's current ratio for the quarter that ended in Dec. 2023 was 1.87.
Advantage Solutions has a current ratio of 1.87. It generally indicates good short-term financial strength.
The historical rank and industry rank for Advantage Solutions's Current Ratio or its related term are showing as below:
ADV'
s Current Ratio Range Over the Past 10 Years
Min: 1.51 Med: 1.71 Max: 1.93
Current: 1.87
During the past 8 years, Advantage Solutions's highest Current Ratio was 1.93. The lowest was 1.51. And the median was 1.71.
ADV's Current Ratio is ranked better than 57.33% of 1057
companies
in the Media - Diversified industry
Industry Median: 1.62
vs ADV: 1.87
Advantage Solutions Current Ratio Historical Data
The historical data trend for Advantage Solutions'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 Advantage Solutions's Current Ratio
For the Advertising Agencies subindustry, Advantage Solutions'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.
Advantage Solutions's Current Ratio Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Advantage Solutions's Current Ratio distribution charts can be found below:
* The bar in red indicates where Advantage Solutions's Current Ratio falls into.
Advantage Solutions 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.
Advantage Solutions'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.
Advantage Solutions (NAS:ADV) 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.
Advantage Solutions Current Ratio Related Terms
Thank you for viewing the detailed overview of Advantage Solutions's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Advantage Solutions (Advantage Solutions) Business Description
Advantage Solutions Inc is the provider of outsourced sales and marketing solutions to consumer goods companies and retailers. It has a technology-enabled platform of sales and marketing services like headquarter sales, retail merchandising, in-store sampling, digital commerce, and shopper marketing. For brands and retailers of all sizes, the firm helps to get the right products on the shelf and into the hands of consumers. The company helps its clients to sell more while spending less. Advantage has offices throughout North America and strategic investments in select markets throughout Africa, Asia, Australia, and Europe through which it services the global needs of multinational, regional, and local manufacturers. Its services are provided across two segments sales and marketing.
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