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. Tai United Holdings's current ratio for the quarter that ended in Jun. 2023 was 0.09.
Tai United Holdings has a current ratio of 0.09. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Tai United Holdings 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 Tai United Holdings's Current Ratio or its related term are showing as below:
HKSE:00718'
s Current Ratio Range Over the Past 10 Years
Min: 0.09 Med: 1.62 Max: 126.9
Current: 0.09
During the past 13 years, Tai United Holdings's highest Current Ratio was 126.90. The lowest was 0.09. And the median was 1.62.
HKSE:00718's Current Ratio is ranked worse than 100% of 98
companies
in the Medical Distribution industry
Industry Median: 1.405
vs HKSE:00718: 0.09
Tai United Holdings Current Ratio Historical Data
The historical data trend for Tai United Holdings'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 Tai United Holdings's Current Ratio
For the Medical Distribution subindustry, Tai United Holdings'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.
Tai United Holdings's Current Ratio Distribution in the Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Tai United Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Tai United Holdings's Current Ratio falls into.
Tai United Holdings 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.
Tai United Holdings's Current Ratio for the fiscal year that ended in Dec. 2022 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.
Tai United Holdings (HKSE:00718) 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.
Tai United Holdings Current Ratio Related Terms
Thank you for viewing the detailed overview of Tai United Holdings's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Tai United Holdings (HKSE:00718) Business Description
Tai United Holdings Ltd is an investment holding company. Its segments include Property investment segment engaged in property investment and leasing of properties; Medical equipment trading segment; Flooring materials trading segment; Mining and exploitation of natural resources segment engaged in mining and production of tungsten resources activities in the Republic of Mongolia; and Financial services and asset management segment that includes trading equity securities and derivatives and managing of assets arising from acquisition of distressed debts assets. It derives majority of the revenue from the Flooring materials trading segment.
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