IBISWorld reports on thousands of industries around the world. Our customers rely on our information and data to stay up to date on industry trends in every sector. With this published IBISWorld industrial research report, you can expect comprehensive, reliable and up-to-date information that will help you make faster and better business decisions. This ratio is a rough indication of a company's ability to meet its current obligations.
In general, the higher the current ratio, the greater the margin between current obligations and the company's ability to pay them. While a stronger ratio indicates that the figures for current assets exceed those of current liabilities, the composition and quality of current assets are critical factors in the analysis of the liquidity of an individual company. This figure expresses the average number of days when accounts receivable are outstanding. In general, the greater the number of outstanding days, the greater the likelihood of delinquency in accounts receivable.
A comparison of this ratio may indicate the degree of control a company has over credit and collections. However, companies in the same industry may offer different conditions to customers, which must be taken into account. This is a solvency ratio, which indicates the ability of a company to pay its long-term debts. The lower the positive ratio, the more solvent the business will be.
The debt-to-equity ratio also provides information about a company's capital structure, the extent to which a company's capital is financed by debt. This relationship is relevant to all industries. Net fixed assets represent long-term investments, so this percentage indicates the relative capital investment structure. This percentage represents the total cash and other resources that are expected to be obtained in cash, or that will be sold or consumed within a year or the company's normal operating cycle, whichever is longer.
This percentage represents all claims against debtors arising from the sale of goods and services and any other miscellaneous claims with respect to non-commercial transactions. Excludes receivables from loans and some receivables from related parties. This percentage represents the tangible assets held for sale in the normal course of business, the goods in the process of production for that sale, or the materials that are to be consumed in the production of goods and services for sale. Excludes assets held for rental purposes.
This percentage represents the tangible or intangible assets held by companies for use in the production or supply of goods and services or for rental to third parties in the company's regular operations. Excludes assets intended for sale. Some examples of these elements are the plant, equipment, patents, goodwill, etc. The valuation of net fixed assets is the net recorded value of accumulated depreciation, amortization and depletion.
This percentage represents obligations that are expected to be paid within a year or within the normal operating cycle, whichever is longer. Current liabilities are generally paid with current assets or through the creation of other current liabilities. Examples of these obligations include accounts payable, advances to customers, etc. This percentage represents all current loans and notes to licensed Canadian banks and subsidiaries of foreign banks, with the exception of loans from a foreign bank, loans secured by real estate mortgages, banker acceptances, bank mortgages and the current share of bank loans to long term.
This percentage represents obligations that are not reasonably expected to be liquidated within the company's normal operating cycle, but are instead paid sometime later than that time. It includes obligations such as long-term bank loans and notes to licensed Canadian banks and foreign subsidiaries, with the exception of loans secured by real estate mortgages, loans from foreign banks and bank mortgages and other long-term liabilities. The following 87 pages are in this category, out of 87 total. This list may not reflect recent changes.