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. SDC Techmedia's current ratio for the quarter that ended in Sep. 2023 was 4.62.
SDC Techmedia has a current ratio of 4.62. 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 SDC Techmedia's Current Ratio or its related term are showing as below:
BOM:535647'
s Current Ratio Range Over the Past 10 Years
Min: 2.09 Med: 5.45 Max: 27.72
Current: 4.62
During the past 12 years, SDC Techmedia's highest Current Ratio was 27.72. The lowest was 2.09. And the median was 5.45.
BOM:535647's Current Ratio is ranked better than 87.73% of 1051
companies
in the Media - Diversified industry
Industry Median: 1.61
vs BOM:535647: 4.62
SDC Techmedia Current Ratio Historical Data
The historical data trend for SDC Techmedia'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 SDC Techmedia's Current Ratio
For the Entertainment subindustry, SDC Techmedia'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.
SDC Techmedia's Current Ratio Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, SDC Techmedia's Current Ratio distribution charts can be found below:
* The bar in red indicates where SDC Techmedia's Current Ratio falls into.
SDC Techmedia 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.
SDC Techmedia's Current Ratio for the fiscal year that ended in Mar. 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.
SDC Techmedia (BOM:535647) 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.
SDC Techmedia Current Ratio Related Terms
Thank you for viewing the detailed overview of SDC Techmedia's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
SDC Techmedia Ltd operates in the business of media and event management. It is also involved in the reproduction of recorded media. Its services are to aggregate and market audio or video and movie contents of various languages in the local and international market, to acquire old movie rights, dub in a range of languages and market to various television channels, and to produce animation films or short movies or documentary movies. The firm also produces animation movies and television serials, and movies, leasing and renting of 4k Projectors to the Theaters, Cinema Halls and Multiplexes. It generates revenue based on the functioning of Theaters, Cinema Halls & Multiplexes in the State of Tamil Nadu and other cities of Southern States of India.
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