Today, we bring you an overview of current ratio of Croatian companies which compose the CROBEX 10 index using 9M 2021 results.
As all the companies which are part of the CROBEX10 index have published their 9M 2021 results, we decided to take a look into liquidity measures of the companies by looking at the current ratio. The ratio is calculated by dividing the company’s current assets by the company’s short-term liabilities. The ratio helps investors understand the company’s ability to cover the short-term debt with current liabilities. The ratio of more than 1 would indicate that the company has more current assets than it has short-term liabilities.
Current ratio of CROBEX10 Constituents
Source: InterCapital Research
Among the observed companies, Valamar Riviera has the highest current ratio of 3.7. As a reminder, Valamar showed strong 3Q results and its cash at end of 9M 2021 stands at HRK 1.32bn. HT follows next with the ratio of 3.18 – also with high liquidity. Končar, Ericsson Nikola Tesla, Podravka and Arena Hospitality all have current ratio of more than 2.
AD Plastik has the lowest current ratio within CROBEX 10 index companies, amounting to 1.3. The highest share in company’s current debt is debt to banks and other financial institutions and debt to suppliers, while inventory and trade receivables make most of company’s current assets.
