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. IHS Markit's current ratio for the quarter that ended in Nov. 2021 was 0.68.
IHS Markit has a current ratio of 0.68. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If IHS Markit 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 IHS Markit's Current Ratio or its related term are showing as below:
INFO'
s Current Ratio Range Over the Past 10 Years
Min: 0.47 Med: 0.75 Max: 1.22
Current: 0.68
During the past 13 years, IHS Markit's highest Current Ratio was 1.22. The lowest was 0.47. And the median was 0.75.
INFO's Current Ratio is not ranked
in the Business Services industry.
Industry Median: 1.725
vs INFO: 0.68
IHS Markit Current Ratio Historical Data
The historical data trend for IHS Markit'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 IHS Markit's Current Ratio
For the Consulting Services subindustry, IHS Markit'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.
IHS Markit's Current Ratio Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, IHS Markit's Current Ratio distribution charts can be found below:
* The bar in red indicates where IHS Markit's Current Ratio falls into.
IHS Markit 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.
IHS Markit's Current Ratio for the fiscal year that ended in Nov. 2021 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.
IHS Markit (NYSE:INFO) 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.
IHS Markit Current Ratio Related Terms
Thank you for viewing the detailed overview of IHS Markit's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.
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