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. 5Banc Split's current ratio for the quarter that ended in Jun. 2016 was 1.25.
5Banc Split has a current ratio of 1.25. It generally indicates good short-term financial strength.
The historical rank and industry rank for 5Banc Split's Current Ratio or its related term are showing as below:
TSX:FBS.PR.C.PFD'
s Current Ratio Range Over the Past 10 Years
Min: 0.7 Med: 1.23 Max: 20.21
Current: 1.25
During the past 13 years, 5Banc Split's highest Current Ratio was 20.21. The lowest was 0.70. And the median was 1.23.
TSX:FBS.PR.C.PFD's Current Ratio is not ranked
in the Asset Management industry.
Industry Median: 3.045
vs TSX:FBS.PR.C.PFD: 1.25
5Banc Split Current Ratio Historical Data
The historical data trend for 5Banc Split'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 5Banc Split's Current Ratio
For the Asset Management subindustry, 5Banc Split'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.
5Banc Split's Current Ratio Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, 5Banc Split's Current Ratio distribution charts can be found below:
* The bar in red indicates where 5Banc Split's Current Ratio falls into.
5Banc Split 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.
5Banc Split's Current Ratio for the fiscal year that ended in Dec. 2015 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.
5Banc Split (TSX:FBS.PR.C.PFD) 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.
5Banc Split Current Ratio Related Terms
Thank you for viewing the detailed overview of 5Banc Split's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
5Banc Split (TSX:FBS.PR.C.PFD) Business Description
5Banc Split, Inc. operates as a closed-end mutual fund in Canada. It invests in a portfolio of publicly listed common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and toronto-Dominion Bank. The Company holds the Portfolio Shares in order to generate fixed cumulative preferential dividends for the holders of the Company's Preferred Shares. Holders of the Capital Shares will also receive, subject to the prior rights of Preferred Shareholders, excess dividends, if any, after payment of the expenses of the Company and dividends on the Preferred Shares. The Company also provides holders of the Capital Shares with a leveraged investment, the value of which is linked to the changes in the fair value of the Portfolio Shares. The holders of Capital Shares benefit from capital appreciation in the Portfolio Shares in excess of the value of the Preferred Shares, any accrued and unpaid distributions on the Preferred Shares, and accrued and unpaid expenses. The Company only trades the Portfolio Shares in limited circumstances as described in the Company's original prospectus.
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