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Profit Planners Management (Profit Planners Management) Current Ratio : 0.61 (As of Feb. 2017)


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What is Profit Planners Management Current Ratio?

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. Profit Planners Management's current ratio for the quarter that ended in Feb. 2017 was 0.61.

Profit Planners Management has a current ratio of 0.61. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Profit Planners Management 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 Profit Planners Management's Current Ratio or its related term are showing as below:

PPMT's Current Ratio is not ranked *
in the Business Services industry.
Industry Median: 1.735
* Ranked among companies with meaningful Current Ratio only.

Profit Planners Management Current Ratio Historical Data

The historical data trend for Profit Planners Management'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.

* Premium members only.

Profit Planners Management Current Ratio Chart

Profit Planners Management Annual Data
Trend May10 May11 May12 May13 May14 May15 May16
Current Ratio
Get a 7-Day Free Trial 0.97 0.72 0.40 0.22 0.45

Profit Planners Management Quarterly Data
May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17
Current Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.43 0.45 0.47 0.50 0.61

Competitive Comparison of Profit Planners Management's Current Ratio

For the Specialty Business Services subindustry, Profit Planners Management'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.


Profit Planners Management's Current Ratio Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Profit Planners Management's Current Ratio distribution charts can be found below:

* The bar in red indicates where Profit Planners Management's Current Ratio falls into.



Profit Planners Management 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.

Profit Planners Management's Current Ratio for the fiscal year that ended in May. 2016 is calculated as

Current Ratio (A: May. 2016 )=Total Current Assets (A: May. 2016 )/Total Current Liabilities (A: May. 2016 )
=0.379/0.842
=0.45

Profit Planners Management's Current Ratio for the quarter that ended in Feb. 2017 is calculated as

Current Ratio (Q: Feb. 2017 )=Total Current Assets (Q: Feb. 2017 )/Total Current Liabilities (Q: Feb. 2017 )
=0.566/0.927
=0.61

* 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.


Profit Planners Management  (OTCPK:PPMT) 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.


Profit Planners Management Current Ratio Related Terms

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Profit Planners Management (Profit Planners Management) Business Description

Traded in Other Exchanges
N/A
Address
1001 Avenues of the Americas, 2nd Floor, New York, NY, USA, 10018
Profit Planners Management Inc provides management, financial and marketing services and business solutions to public and private micro-cap companies.

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