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Enerpac Tool Corp Current ratio

What is the Current ratio of Enerpac Tool Corp?

The Current ratio of Enerpac Tool Group Corp is 2.85

What is the definition of Current ratio?



Current ratio is a liquidity ratio that measures whether or not a company has enough resources to meet its short-term obligations.

mrq (most recent quarter)

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.

Current ratio of companies in the Industrials sector on NYSE compared to Enerpac Tool Corp

What does Enerpac Tool Corp do?

enerpac tool group corp. manufactures and sells a range of industrial products and solutions worldwide. it operates in two segments, industrial tools & services (it&s) and other. the it&s segment designs, manufactures, and distributes branded hydraulic and mechanical tools; and provides services and tool rentals to the industrial, maintenance, infrastructure, oil and gas, energy, and other markets. it also offers branded tools and engineered heavy lifting technology solutions, and hydraulic torque wrenches; energy maintenance and manpower services; high-force hydraulic and mechanical tools, including cylinders, pumps, valves, and specialty tools; and bolt tensioners and other miscellaneous products. this segment markets its branded tools and services primarily under the enerpac, hydratight, larzep, and simplex brands. the other segment designs and manufactures synthetic ropes and biomedical assemblies. the company was formerly known as actuant corporation and changed its name to enerpa

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