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. Perpetual Industries's current ratio for the quarter that ended in Dec. 2022 was 0.28.
Perpetual Industries has a current ratio of 0.28. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Perpetual Industries 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 Perpetual Industries's Current Ratio or its related term are showing as below:
PRPI'
s Current Ratio Range Over the Past 10 Years
Min: 0.02 Med: 0.03 Max: 0.6
Current: 0.28
During the past 5 years, Perpetual Industries's highest Current Ratio was 0.60. The lowest was 0.02. And the median was 0.03.
PRPI's Current Ratio is ranked worse than 98.41% of 3028
companies
in the Industrial Products industry
Industry Median: 1.99
vs PRPI: 0.28
Perpetual Industries Current Ratio Historical Data
The historical data trend for Perpetual Industries'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.
Perpetual Industries Current Ratio Chart
Perpetual Industries Annual Data
Trend
Jul13
Jul14
Jul15
Dec21
Dec22
Current Ratio
0.02
0.02
0.03
0.60
0.28
Perpetual Industries Semi-Annual Data
Jul13
Jul14
Jul15
Dec21
Dec22
Current Ratio
0.02
0.02
0.03
0.60
0.28
Competitive Comparison of Perpetual Industries's Current Ratio
For the Specialty Industrial Machinery subindustry, Perpetual Industries'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.
Perpetual Industries's Current Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Perpetual Industries's Current Ratio distribution charts can be found below:
* The bar in red indicates where Perpetual Industries's Current Ratio falls into.
Perpetual Industries 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.
Perpetual Industries'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.
Perpetual Industries (OTCPK:PRPI) 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.
Perpetual Industries Current Ratio Related Terms
Thank you for viewing the detailed overview of Perpetual Industries's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Perpetual Industries (Perpetual Industries) Business Description
Perpetual Industries Inc is engaged in the research, development, and commercialization of energy efficient products. The company's proprietary XYO Mechanical Balancing Technology is designed to harness rotor displacement energy and delivers solutions for inefficiencies that commonly affect rotating equipment, machinery, and devices. The firm is expanding expertise and knowledge of energy-efficient technology by developing low-cost, green energy solutions for various industries, including artificial intelligence, blockchain mining, graphic rendering, renewable energy, cloud computing and the internet of things, while continuing research, development, and commercialization of its proprietary XYO Balancing Technology in key applications.
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