Today, we are bringing you an overview of the current ratio for the Slovenian Blue-Chip companies. 

As Slovenian companies have published their 2021 results, we decided to take a look into the liquidity measure of the Slovenian companies (excluding financials) by looking at their 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. A ratio of more than 1 would indicate that the company has more current assets than it has short-term liabilities. 

Current ratio of Slovenian Blue-Chip companies 

Among the observed companies, Cinkarnja Celje has the highest current ratio of 4.6. We should note that 54% of Cinkarna’s current assets are held in cash and cash equivalents, amounting to EUR 59.8m. Only their cash and cash equivalents are enough to cover all current liabilities, making a very healthy liquidity structure for Cinkarna. Krka follows with the next ratio of 3.2 – also representing very high liquidity. It should be emphasized that almost a third of total current assets are trade receivables – revenues not yet charged. Krka’s trade receivables, if received in full amount, would be able to cover all of the company’s current liabilities.

Luka Koper and Petrol have a current ratio of less than 2. Luka Koper has the lowest current ratio amounting to 1.2. Petrol has also a current ratio amounting to 1.2. This means the company has just a little bit more than enough of its current assets to cover all current liabilities. We should note that 60% of the company’s current assets are being held in operating receivables – just revenues not yet charged. However, operating liabilities for Petrol are about just the same.