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. Enerpac Tool Group's current ratio for the quarter that ended in Feb. 2024 was 3.11.
Enerpac Tool Group has a current ratio of 3.11. 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 Enerpac Tool Group's Current Ratio or its related term are showing as below:
EPAC'
s Current Ratio Range Over the Past 10 Years
Min: 1.71 Med: 2.4 Max: 3.26
Current: 3.11
During the past 13 years, Enerpac Tool Group's highest Current Ratio was 3.26. The lowest was 1.71. And the median was 2.40.
EPAC's Current Ratio is ranked better than 73.88% of 3024
companies
in the Industrial Products industry
Industry Median: 1.98
vs EPAC: 3.11
Enerpac Tool Group Current Ratio Historical Data
The historical data trend for Enerpac Tool Group'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 Enerpac Tool Group's Current Ratio
For the Specialty Industrial Machinery subindustry, Enerpac Tool Group'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.
Enerpac Tool Group's Current Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Enerpac Tool Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Enerpac Tool Group's Current Ratio falls into.
Enerpac Tool Group 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.
Enerpac Tool Group's Current Ratio for the fiscal year that ended in Aug. 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.
Enerpac Tool Group (NYSE:EPAC) 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.
Enerpac Tool Group Current Ratio Related Terms
Thank you for viewing the detailed overview of Enerpac Tool Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Enerpac Tool Group (Enerpac Tool Group) Business Description
Enerpac Tool Group, previously known as Actuant, provides high-precision tools, controlled-force products, and solutions for precise heavy lifting. The company operates through two segments: industrial tools and services and other. It categorizes its revenue into two parts: product sales and services, which include manpower services and rentals. Product sales is the largest contributor to the company's total revenue. Geographically, the company operates in the United States, Asia, Australia, Europe, Middle East, and other areas. The U.S. makes up the largest contribution to the company's total revenue.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
EPAC has been successfully added to your 