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. Eco Animal Health Group's current ratio for the quarter that ended in Sep. 2023 was 3.16.
Eco Animal Health Group has a current ratio of 3.16. 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 Eco Animal Health Group's Current Ratio or its related term are showing as below:
LSE:EAH'
s Current Ratio Range Over the Past 10 Years
Min: 3.13 Med: 3.95 Max: 5.24
Current: 3.16
During the past 13 years, Eco Animal Health Group's highest Current Ratio was 5.24. The lowest was 3.13. And the median was 3.95.
LSE:EAH's Current Ratio is ranked better than 72.42% of 1077
companies
in the Drug Manufacturers industry
Industry Median: 1.89
vs LSE:EAH: 3.16
Eco Animal Health Group Current Ratio Historical Data
* 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 Eco Animal Health Group's Current Ratio
For the Drug Manufacturers - Specialty & Generic subindustry, Eco Animal Health 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.
Eco Animal Health Group's Current Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Eco Animal Health Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Eco Animal Health Group's Current Ratio falls into.
Eco Animal Health 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.
Eco Animal Health Group's Current Ratio for the fiscal year that ended in Mar. 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.
Eco Animal Health Group (LSE:EAH) 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.
Eco Animal Health Group Current Ratio Related Terms
Thank you for viewing the detailed overview of Eco Animal Health Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Eco Animal Health Group (LSE:EAH) Business Description
Eco Animal Health Group PLC is engaged in the manufacture and marketing of animal health products. The company's product portfolio includes Aivlosin - macrolide antibiotic for the treatment of respiratory and enteric diseases in pigs and poultry; Ecomectin, Eco heart, Ecotraz, and Ecomintic for treatment and prevention of parasites in cattle, sheep, pigs, horses, and dogs; and Chlortetracycline and Oxytetracycline for treatment of bacterial infections in pigs, poultry and cattle. The geographical segments of the company include Corporate/UK, China & Japan, North America, South & South East Asia, Latin America, Europe, and the Rest of the World.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
LSE:EAH has been successfully added to your 