GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Brookfield Asset Management Ltd (NYSE:BAM) » Definitions » Current Ratio

Brookfield Asset Management (Brookfield Asset Management) Current Ratio

: 0.80 (As of Dec. 2023)
View and export this data going back to 2022. Start your Free Trial

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. Brookfield Asset Management's current ratio for the quarter that ended in Dec. 2023 was 0.80.

Brookfield Asset Management has a current ratio of 0.80. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Brookfield Asset Management has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.

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

BAM' s Current Ratio Range Over the Past 10 Years
Min: 0.8   Med: 0.96   Max: 1
Current: 0.8

During the past 4 years, Brookfield Asset Management's highest Current Ratio was 1.00. The lowest was 0.80. And the median was 0.96.

BAM's Current Ratio is ranked worse than
87.12% of 683 companies
in the Asset Management industry
Industry Median: 2.97 vs BAM: 0.80

Brookfield Asset Management Current Ratio Historical Data

The historical data trend for Brookfield Asset Management'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.

Brookfield Asset Management Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Current Ratio
- 0.96 1.00 0.80

Brookfield Asset Management Quarterly Data
Dec20 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Current Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.00 0.91 0.88 0.83 0.80

Competitive Comparison

For the Asset Management subindustry, Brookfield Asset Management'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.


Brookfield Asset Management Current Ratio Distribution

For the Asset Management industry and Financial Services sector, Brookfield Asset Management's Current Ratio distribution charts can be found below:

* The bar in red indicates where Brookfield Asset Management's Current Ratio falls into.



Brookfield Asset Management 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.

Brookfield Asset Management's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Current Ratio (A: Dec. 2023 )=Total Current Assets (A: Dec. 2023 )/Total Current Liabilities (A: Dec. 2023 )
=895/1120
=0.80

Brookfield Asset Management's Current Ratio for the quarter that ended in Dec. 2023 is calculated as

Current Ratio (Q: Dec. 2023 )=Total Current Assets (Q: Dec. 2023 )/Total Current Liabilities (Q: Dec. 2023 )
=895/1120
=0.80

* 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.


Brookfield Asset Management  (NYSE:BAM) 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.


Brookfield Asset Management Current Ratio Related Terms

Thank you for viewing the detailed overview of Brookfield Asset Management's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Brookfield Asset Management (Brookfield Asset Management) Business Description

Traded in Other Exchanges
Address
181 Bay Street, Suite 100, Brookfield Place, Toronto, ON, CAN, M5H 2T3
Brookfield Asset Management Ltd engages in providing alternative asset management services through an ownership interest in a leading global alternative asset management business. It offers a range of alternative investment products to investors around the world including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies, and private wealth investors.