What is Hisamitsu Pharmaceutical Co 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. Hisamitsu Pharmaceutical Co's current ratio for the quarter that ended in Nov. 2023 was 3.98.
Hisamitsu Pharmaceutical Co has a current ratio of 3.98. 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 Hisamitsu Pharmaceutical Co's Current Ratio or its related term are showing as below:
TSE:4530'
s Current Ratio Range Over the Past 10 Years
Min: 3.73 Med: 5.21 Max: 6.59
Current: 4.22
During the past 13 years, Hisamitsu Pharmaceutical Co's highest Current Ratio was 6.59. The lowest was 3.73. And the median was 5.21.
TSE:4530's Current Ratio is ranked better than 81.15% of 1077
companies
in the Drug Manufacturers industry
Industry Median: 1.89
vs TSE:4530: 4.22
Hisamitsu Pharmaceutical Co 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 Hisamitsu Pharmaceutical Co's Current Ratio
For the Drug Manufacturers - Specialty & Generic subindustry, Hisamitsu Pharmaceutical Co'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.
Hisamitsu Pharmaceutical Co's Current Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Hisamitsu Pharmaceutical Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Hisamitsu Pharmaceutical Co's Current Ratio falls into.
Hisamitsu Pharmaceutical Co 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.
* 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.
Hisamitsu Pharmaceutical Co (TSE:4530) 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.
Hisamitsu Pharmaceutical Co Current Ratio Related Terms
Thank you for viewing the detailed overview of Hisamitsu Pharmaceutical Co's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Hisamitsu Pharmaceutical Co (TSE:4530) Business Description
Hisamitsu Pharmaceutical Co Inc is a major pharmaceutical products manufacturer in Japan. The company collaborates with its subsidiaries and associates in operating its business across two segments, The Medical and Related Product segment and the Others segment. The Medical segment represents the company's foremost revenue generating operations. It markets drugs under the Salanpas, Salonsip, Lifecella, Mohrus and Keplat brands, which mainly serve topical medication needs with pain relief creams, gels, sprays, lotions and ointments. The Others segment refers to its miscellaneous businesses such as cable television broadcasting, internet connection, packing materials and insurance. Apart from its primary market in Japan, Hisamitsu has a reach across other regions like North America.
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