These Consumer Non-Cyclical Companies Have Strong Current Ratios

The following five companies in the Consumer Non-Cyclicalsector 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 this list excludes all companies whose market capitalization is less than $500 million.

  1. Hansen Natural Corporation (NASDAQ:HANS):  The shares have traded in a 52-week range of $37.19 to $68.58 and most recently traded at $66.76 per share.  Its market capitalization is $5.9 billion and it earned $2.52 pe share last year.  Its current ratio is 6.16 and its book value per share is $9.66.  About the company: Hansen Natural Corporation markets and distributes fruit juices, fruit juice Smoothies, juice cocktails, iced teas, lemondaes, energy drinks, and still water.  The Company distributes its beverages under the Hansen’s Natural brand name in the United States and overseas.
  2. Corning Incorporated (NYSE:GLW):  The shares have traded in a 52-week range of $15.45 to $23.43 and most recently traded at $21.05 per share.  Its market capitalization is $33 billion and it earned $2.20 per share last year.  Its current ratio is 4.77 and its book value per share is $12.96.  About the company: Corning Incorporated is a global, technology-based company.  The Company produces optical fiber, cable, and photonic components for the telecommunications industry, as well as manufactures glass panels, funnels, liquid crystal display glass and projection video lens assemblies for the information display industry.
  3. Lancaster Colony Corp. (NASDAQ:LANC):  The shares have traded in a 52-week range of $43.28 to $64.72 and most recently traded at $62.55 per share.  Its market capitalization is $1.72 billion and it earned $3.57 per share last year.  Its current ratio is 4.05 and its book value per share is $18.11.  About the company: Lancaster Colony Corporation is a diversified manufacturer.  The Company produces and markets consumer products with a focus on specialty food products for the retail and foodservices markets.  Lancaster also manufactures and markets candles for the food, drug, and mass markets.
  4. Tootsie Roll Industries, Inc. (NYSE:TR):  The shares have traded in a 52-week range of $23.20 to $29.98 and most recently traded at $29.68 per share.  Its market capitalization is $1.73 billion and it earned $0.92 per share last year.  Its current ratio is 4.06 and its book value per share is $11.50.  About the company: Tootsie Roll Industries, Inc. manufactures and sells candy.  The Company’s products are sold under the Tootsie Roll, Tootsie Roll Pops, Child’s Play, Charms, Blow Pop, Blue Razz, Cella’s, Mason Dots, Mason Crows, Junior Mint, and other names.  Tootsie Roll’s principal markets are in the United States, Canada, and Mexico.
  5. Peet’s Coffee & Tea, Inc. (NASDAQ:PEET):  The stock has traded in a 52-week range of $33.20 to $49.58 and most recently traded at $48.80 per share.  Its market capitalization is $633 million and it earned $1.47 per share last year.  Its current ratio is 4.62 and its book value per share is $12.99.  About the company: Peet’s Coffee & Tea, Inc. markets fresh roasted whole bean coffee.  The Company distributes its products through specialty grocery and gourmet food stores, mail order, and office and restaurant accounts.

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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