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. HomeCo Daily Needs REIT's current ratio for the quarter that ended in Dec. 2023 was 1.86.
HomeCo Daily Needs REIT has a current ratio of 1.86. It generally indicates good short-term financial strength.
The historical rank and industry rank for HomeCo Daily Needs REIT's Current Ratio or its related term are showing as below:
ASX:HDN'
s Current Ratio Range Over the Past 10 Years
Min: 0.45 Med: 0.64 Max: 1.86
Current: 1.86
During the past 2 years, HomeCo Daily Needs REIT's highest Current Ratio was 1.86. The lowest was 0.45. And the median was 0.64.
ASX:HDN's Current Ratio is ranked better than 68.2% of 717
companies
in the REITs industry
Industry Median: 1.02
vs ASX:HDN: 1.86
HomeCo Daily Needs REIT 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.
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HomeCo Daily Needs REIT Current Ratio Chart
HomeCo Daily Needs REIT Annual Data
Trend
Jun22
Jun23
Current Ratio
0.45
0.49
HomeCo Daily Needs REIT Semi-Annual Data
Dec21
Jun22
Dec22
Jun23
Dec23
Current Ratio
0.64
0.45
1.14
0.49
1.86
Competitive Comparison of HomeCo Daily Needs REIT's Current Ratio
For the REIT - Retail subindustry, HomeCo Daily Needs REIT'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.
HomeCo Daily Needs REIT's Current Ratio Distribution in the REITs Industry
For the REITs industry and Real Estate sector, HomeCo Daily Needs REIT's Current Ratio distribution charts can be found below:
* The bar in red indicates where HomeCo Daily Needs REIT's Current Ratio falls into.
HomeCo Daily Needs REIT 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.
HomeCo Daily Needs REIT's Current Ratio for the fiscal year that ended in Jun. 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.
HomeCo Daily Needs REIT (ASX:HDN) 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.
HomeCo Daily Needs REIT Current Ratio Related Terms
Thank you for viewing the detailed overview of HomeCo Daily Needs REIT's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
HomeCo Daily Needs REIT (ASX:HDN) Business Description
HomeCo Daily Needs REIT, or HomeCo, is an externally managed property trust run by HMC Capital which also runs HealthCo Healthcare and Wellness REIT and unlisted funds. HomeCo targets 50% of assets in neighbourhood malls, 30% large-format, and 20% in health and services. After merging with Aventus Retail REIT in 2022, HomeCo is overweight large-format (just under half its portfolio) and underweight neighbourhood (one third of the portfolio), with health and services slightly below target. The plan is to move back to the target via redevelopment and tenant remixing, and potentially acquisitions. HomeCo seeks tenant leases before commencing developments, so we expect development opportunities will arise gradually, as population growth adds demand in HomeCo's catchments.
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