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. Renewable Energy Group's current ratio for the quarter that ended in Mar. 2022 was 5.14.
Renewable Energy Group has a current ratio of 5.14. 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 Renewable Energy Group's Current Ratio or its related term are showing as below:
REGI'
s Current Ratio Range Over the Past 10 Years
Min: 0.94 Med: 1.94 Max: 7.76
Current: 5.14
During the past 13 years, Renewable Energy Group's highest Current Ratio was 7.76. The lowest was 0.94. And the median was 1.94.
REGI's Current Ratio is not ranked
in the Oil & Gas industry.
Industry Median: 1.33
vs REGI: 5.14
Renewable Energy 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 Renewable Energy Group's Current Ratio
For the Oil & Gas Refining & Marketing subindustry, Renewable Energy 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.
Renewable Energy Group's Current Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Renewable Energy Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Renewable Energy Group's Current Ratio falls into.
Renewable Energy 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.
Renewable Energy Group's Current Ratio for the fiscal year that ended in Dec. 2021 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.
Renewable Energy Group (NAS:REGI) 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.
Renewable Energy Group Current Ratio Related Terms
Thank you for viewing the detailed overview of Renewable Energy Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Renewable Energy Group (Renewable Energy Group) Business Description
Renewable Energy Group Inc is a producer and refiner of biofuels in the oil and gas industry. The company's operations include acquiring feedstock, operating biorefineries, and marketing and distributing renewable fuels. Its operating segments include Biomass-based Diesel, Services, and Corporate and other. The majority of the company's revenue comes from the sale of biomass-based diesel. Geographically, it operates in the United States, Germany and Other Foreign countries of which the United States derived maximum revenue. At its biorefineries, natural fats, oils, and greases are converted into biofuels and renewable chemicals.
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