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. Sunoco LP's current ratio for the quarter that ended in Dec. 2023 was 1.40.
Sunoco LP has a current ratio of 1.40. It generally indicates good short-term financial strength.
The historical rank and industry rank for Sunoco LP's Current Ratio or its related term are showing as below:
SUN'
s Current Ratio Range Over the Past 10 Years
Min: 1.05 Med: 1.37 Max: 3.74
Current: 1.4
During the past 13 years, Sunoco LP's highest Current Ratio was 3.74. The lowest was 1.05. And the median was 1.37.
SUN's Current Ratio is ranked better than 52.59% of 1080
companies
in the Oil & Gas industry
Industry Median: 1.335
vs SUN: 1.40
Sunoco LP Current Ratio Historical Data
The historical data trend for Sunoco LP'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 Sunoco LP's Current Ratio
For the Oil & Gas Refining & Marketing subindustry, Sunoco LP'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.
Sunoco LP's Current Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Sunoco LP's Current Ratio distribution charts can be found below:
* The bar in red indicates where Sunoco LP's Current Ratio falls into.
Sunoco LP 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.
Sunoco LP's Current Ratio for the fiscal year that ended in Dec. 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.
Sunoco LP (NYSE:SUN) 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.
Sunoco LP Current Ratio Related Terms
Thank you for viewing the detailed overview of Sunoco LP's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Sunoco LP is a Delaware limited partnership formed in June 2012 by Susser Holdings Corporation or SUSS. In September 2012, the Company completed its initial public offering. The Company, along with its wholly owned subsidiary, is an independent motor fuel distributor by gallons in Texas, and among the distributors of Valero and Chevron branded motor fuel in the United States. The Company also receives rental income from real estate that it leases or subleases. SUSS operated approximately 580 retail convenience stores under its proprietary Stripes convenience store brand at year-end, mainly in growing Texas markets. Stripes is an independent chain of convenience stores in Texas based on store count and retail motor fuel volumes sold. Its business is integral to the success of SUSS' retail operations, and SUSS purchases substantially all of its motor fuel from the Company. In addition to distributing motor fuel, it also distributes other petroleum products such as propane and lube oil, and receives rental income from real estate that it leases or subleases. The Company purchases motor fuel mainly from independent refiners and oil companies and distributes it throughout Texas and in Louisiana, New Mexico and Oklahoma. The Company competes mainly with other independent motor fuel distributors. The Company is subject to various federal, state and local environmental laws and regulations, including those relating to underground storage tanks; the release or discharge of hazardous materials into the air, water and soil; the generation, storage, handling, use, transportation and disposal of regulated materials; the exposure of persons to regulated materials; and the remediation of contaminated soil and groundwater.
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