Current ratio of Baldwin & Lyons, Inc.
The current ratio is an indication of a company's liquidity and measures the capability to meet a company's short-term obligations. It compares a firm's current assets to its current liabilities, and is expressed as current assets divided by current liabilities. The ratio is only useful when two companies are compared within industry because inter industry business operations differ substantially. To determine liquidity, the current ratio is not as helpful as the quick ratio, because it includes all those assets that may not be easily liquidated, like prepaid expenses and inventory.
Acceptable current ratios vary from industry to industry. In many cases an investor would consider a high current ratio to be better than a low current ratio, because a high current ratio indicates that the company is more likely to pay the investor back. Large current ratios are not always a good sign for investors. If the company's current ratio is too high it may indicate that the company is not efficiently using its current assets or its short-term financing facilities. If current liabilities exceed current assets the current ratio will be less than 1. A current ratio of less than 1 indicates that the company may have problems meeting its short-term obligations.
Some types of businesses can operate with a current ratio of less than one however. If inventory turns into cash much more rapidly than the accounts payable become due, then the firm's current ratio can comfortably remain less than one. Inventory is valued at the cost of acquiring it and the firm intends to sell the inventory for more than this cost. The sale will therefore generate substantially more cash than the value of inventory on the balance sheet. Low current ratios can also be justified for businesses that can collect cash from customers long before they need to pay their suppliers.
Baldwin & Lyons, Inc., together with its subsidiaries, engages in marketing and underwriting property and casualty insurance products primarily in the United States. The company operates through two segments, Property and Casualty Insurance, and Reinsurance. It provides a range of fleet transportation insurance products, such as commercial motor vehicle liability, physical damage, and other liability insurance; workers compensation insurance; specialized accident that include medical and indemnity insurance products for independent contractors; non-trucking motor vehicle liability insurance for independent contractors; fidelity and surety bonds; and inland marine products consisting of cargo insurance. The company also offers various additional services, including risk surveys and analyses, safety program design and monitoring, government compliance assistance, loss control, and cost studies; research, development, and consultation in connection with new insurance programs that comprise development of computerized systems to assist customers in monitoring their accident data; and claims handling services to clients with self-insurance programs. Baldwin & Lyons, Inc. was founded in 1930 and is headquartered in Carmel, Indiana.
|PRO PROS Holdings, Inc.||NYSE > Technology > EDP Services||2.08|
|UTHR United Therapeutics Corporation||NASDAQ > Health Care > Major Pharmaceuticals||2.08|
|OEC Orion Engineered Carbons S.A||NYSE > Basic Industries > Major Chemicals||2.08|
|MMS Maximus, Inc.||NYSE > Miscellaneous > Business Services||2.08|
|FOX Twenty-First Century Fox, Inc.||NASDAQ > Consumer Services > Television Services||2.08|
|FOXA Twenty-First Century Fox, Inc.||NASDAQ > Consumer Services > Television Services||2.08|
|BWINA Baldwin & Lyons, Inc.||NASDAQ > Finance > Property-Casualty Insurers||2.08|
|MAG MAG Silver Corporation||NYSEMKT > Basic Industries > Precious Metals||297.63|
|SLF Sun Life Financial Inc.||NYSE > Finance > Life Insurance||463.95|
|WMIH WMIH Corp.||NASDAQ > Finance > Finance: Consumer Services||812.31|
|AMG Affiliated Managers Group, Inc.||NYSE > Finance > Investment Managers||966.10|
|HUNT Hunter Maritime Acquisition Corp.||NASDAQ > Transportation > Oil Refining/Marketing||1,687.50|
|IOR Income Opportunity Realty Investors, Inc.||NYSEMKT > Consumer Services > Real Estate Investment Trusts||4,830.80|