Molycorp (XSWX:MCP) Current Ratio : 4.41 (As of Jun. 2015)

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What is Molycorp 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. Molycorp's current ratio for the quarter that ended in Jun. 2015 was 4.41.

Molycorp has a current ratio of 4.41. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.

The historical rank and industry rank for Molycorp's Current Ratio or its related term are showing as below:

XSWX:MCP' s Current Ratio Range Over the Past 10 Years
Min: 0.64 Med: 3.5 Max: 23.11
Current: 4.41

During the past 6 years, Molycorp's highest Current Ratio was 23.11. The lowest was 0.64. And the median was 3.50.

XSWX:MCP's Current Ratio is not ranked
in the Metals & Mining industry.
Industry Median: 2.13 vs XSWX:MCP: 4.41

Molycorp Current Ratio Historical Data

The historical data trend for Molycorp'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.

Molycorp Current Ratio Chart

Molycorp Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Current Ratio

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17.15

3.58

1.76

3.76

4.13

Molycorp Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15
Current Ratio	Get a 7-Day Free Trial															3.26	3.88	4.13	3.50	4.41

Competitive Comparison of Molycorp's Current Ratio

For the Other Industrial Metals & Mining subindustry, Molycorp'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.

Molycorp's Current Ratio Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Molycorp's Current Ratio distribution charts can be found below:

* The bar in red indicates where Molycorp's Current Ratio falls into.

Molycorp 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.

Molycorp's Current Ratio for the fiscal year that ended in Dec. 2014 is calculated as

Current Ratio (A: Dec. 2014 )	=	Total Current Assets (A: Dec. 2014 )	/	Total Current Liabilities (A: Dec. 2014 )
	=	443.679	/	107.336
	=	4.13

Molycorp's Current Ratio for the quarter that ended in Jun. 2015 is calculated as

Current Ratio (Q: Jun. 2015 )	=	Total Current Assets (Q: Jun. 2015 )	/	Total Current Liabilities (Q: Jun. 2015 )
	=	312.405	/	70.76
	=	4.41

Molycorp (XSWX:MCP) 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.

Molycorp Current Ratio Related Terms

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Molycorp (XSWX:MCP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Molycorp Inc (XSWX:MCP) » Definitions » Current Ratio

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Address

Website

http://www.molycorp.com

Molycorp Inc, formerly known as Rare Earth Acquisitions LLC, was formed on March 4, 2010 as a new Delaware corporation. The Company manufactures custom engineered rare earth and rare metal products. Its business is organized into four reportable segments: Resources; Chemicals and Oxides; Magnetic Materials and Alloys; and Rare Metals. The Resources segment includes its operations at the Molycorp Mountain Pass Rare Earth Facility, where it conducts rare earth minerals extraction to produce: rare earth concentrates; REO, including lanthanum, cerium, neodymium, praseodymium, and yttrium; heavy rare earth concentrates, which include samarium, europium, gadolinium, terbium, dysprosium, and others; and SorbXTM, a line of proprietary rare earth-based water treatment products. The Chemicals and Oxides segment includes: production of REO at its operations at Molycorp Silmet; separated heavy rare earth oxides and other custom engineered materials from its facilities in Jiangyin, Jiangsu Province, China; and production of REO, salts of rare earth elements, or REEs, zirconium-based engineered materials and mixed rare earth/zirconium oxides from its facilities in Zibo, Shandong Province, China. The Magnetic Materials and Alloys segment includes: the production of Neo Powders through its wholly-owned manufacturing facilities in Tianjin, China, and Korat, Thailand, under the Molycorp Magnequench brand. This operating segment also includes manufacturing of neodymium and samarium magnet alloys, other specialty alloy products and rare earth metals at its MMA facility, located in Tolleson, Arizona. The Rare Metals segment produces, reclaims, refines and markets high value niche metals and their compounds that include gallium, indium, rhenium, tantalum, and niobium. Applications from products made in this segment include wireless technologies, LED, flat panel display, turbine, solar, catalyst, steel additive, electronics applications, and others. The Company's operations are subject to numerous and detailed international, national, federal, state and local laws, regulations and permits affecting the mining and mineral processing industry, including those pertaining to employee health and safety, environmental permitting and licensing, air quality standards, greenhouse gas, or GHG, emissions, water usage and disposal, pollution, waste management, plant and wildlife protection, handling and disposal of radioactive substances, remediation of soil and groundwater contamination, land use, reclamation and restoration of properties, the discharge of materials into the environment and groundwater quality and availability.

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