These Companies Have Very High Current Ratios in the Services Sector

The following five companies in the Services sector have high current ratios.

The current ratio is calculated as current assets over current liabilities.  Current assets are those accounts such as cash, receivables, and other highly liquid assets that can be readily converted to cash.  Current liabilities are generally considered to be those debts due within one fiscal quarter, such as accounts payable, wages, interest payments on long-term debt that are due in the near future, etc.  Therefore, the current ratio is essentially a measure of a company’s ability to pay its bills in the near term.  Companies that are liquid enough to pay their bills can continue operating without trouble.  Accordingly, the higher the current ratio the more likely it is that the company won’t have a problem paying its bills.  Of course, as with all financial ratios, the current ratio can’t be used in isolation to determine whether a stock is a buy or not.

Note that the following list excludes all companies whose market capitalization is less than $500 million:

  1. TeleNav, Inc. (NASDAQ:TNAV): The shares have traded in a 52-week range of $4.65 to $15.38 and most recently traded at $15.07 per share.  Its market capitalization is $626.78 million and it earned $0.99 per share last year.  Its current ratio is 3.04 and its book value per share is $4.27.  About the company: TeleNav, Inc. provides location based solutions.  The Company offers GPS solutions for mobile phones and smart phones.
  2. Tejon Ranch Company (NYSE:TRC): The shares have traded in a 52-week range of $21.15 to $47.70 and most recently traded at $35.86.  Its market capitalization is $708.88 million and it earned $0.22 per share last year.  Its current ratio is 21.37 and its book value per share is $11.99.  About the company: Tejon Ranch Co. is a diversified real estate development and agri-business company owning land located in Los Angeles and Kern counties, California.  The Company is in the process of developing its land holdings along transportation corridors into master-planned business and residential communities.
  3. Celera Corporation (NASDAQ:CRA): The shares have traded in a 52-week range of $5.35 to $8.42 and most recently traded at $8.05 per share.  Its market capitalization is $661.56 million and it lost $0.21 per share last year.  Its current ratio is 12.3 and its book value per share is $6.86.  About the company: Celera Corporation is a diagnostics company that delivers personalized disease management through a combination of products and services.  The Company operates a clinical laboratory that provides testing services and develops, manufactures, and oversees the commercialization of molecular diagnostic products,
  4. Liberty Media Corp.-Starz (NASDAQ:LSTZA): The shares have traded in a 52-week range of $48.17 to $80.21 and most recently traded at $77.32 per share.  Its current ratio is 6.09 and its book value per share is $44.13.  About the company:  Liberty Media-Starz owns and operates cable television channels and Internet businesses.  The Company operates cable television channels that televise movies; offers satellite Internet access; operates fantasy sports games; and offers online games, information and entertainment for sports fans.
  5. DG FastChannel, Inc. (NASDAQ:DGIT): The shares have traded in a 52-week range of $15.02 to $44.19 and most recently traded at $35.94 per share.  Its market capitalization is $1 billion and it arned $1.62 per share last year.  Its current ratio is 9.23 and its book value per share is $17.80.  About the company: DG Fastchannel, Inc. operates a nationwide network that links advertisers and advertising agencies with radio stations and television stations across the United States and Canada.  The Company delivers audio, video, image, and data content in order to facilitate transactions among advertising industry participants.

Note: Financial data is taken from Yahoo! Finance.  Selected other data is taken from Google Finance and publicly available SEC filings.  All data are assumed to be accurate.

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