These Transportation Stocks Have High Current Ratios

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

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

  1. Diana Shipping, Inc. (NYSE:DSX):  The stock has traded in a 52-week range of $10.75 to $14.77 and most recently traded at $11.29 per share.  Its market capitalization is $914.21 million and it earned $1.64 per share last year.  Its current ratio is 14.84 and its book value per share is $13.95.  About the company: Diana Shipping Inc. owns and operates a fleet of dry bulk carriers.  The company transports iron ore, grain and other dry cargoes along worldwide shipping routes.
  2. Nordic American Tanker Shipping Limited (NYSE:NAT):  The stock has traded in a 52-week range of $22.12 to $31.28 and most recently traded at $24.20 per share.  Its market capitalization is $1.13 billion and it lost $0.22 per share last year.  Its current ratio is 10.24 and its book value per share is $22.17.  About the company: Nordic American Tanker Shipping Limited is a shipping company that owns and charters Suezmax tankers for oil transportation.  The Company’s ships are all active on the spot freight market.
  3. American Railcar Industries, Inc. (NASDAQ:ARII):  The stock has traded in a 52-week range of $10.22 and $28.74 and it most recently traded at $24.49 per share.  Its market capitalization is $522.91 million and it lost $1.19 per share last year.  Its current ratio is 7.47 and its book value per share if $14.20.  About the company:  American Railcar Industries, Inc. manufactures railroad rolling stock.  The Company produces and repairs covered hopper and tank railcars, and offers fleet management services.  American Railcar markets its products to companies that lease the cars to third parties, shippers and railroads.
  4. Knightsbridge Tankers Limited (NASDAQ:VLCCF):  The stock has traded in a 52-week range of $14.66 and $25.80 and it most recently traded at $23.02 per share.  Its market capitalization is $562.26 million and it earned $2.02 per share last year.  Its current ratio is 6.33 and its book value per share is $15.39.  About the company:  Knightsbridge Tankers Ltd. acquires, owns, leases, and charters double hull Very Large Crude Carriers.
  5. Forward Air Corporation (NASDAQ:FWRD):  The shares have traded in a 52-week range of $22.39 and $35.03 and most recently traded at $32.21 per share.  Its market capitalization is $946.2 million and it earned $1.25 per share last year.  Its current ratio is 4.77 and its book value per share is $9.17.  About the company: Forward Air Corporation provides transportation services to air freight forwarders, air cargo carriers, and domestic and international airlines.  The Company also operates a truckload business that is an irregular route, high service-level carrier that transports a wide range of commodities in both interstate and intrastate commerce.

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.

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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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