The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Bottomline Technologies's current ratio for the quarter that ended in Mar. 2022 was 1.35.
Bottomline Technologies has a current ratio of 1.35. It generally indicates good short-term financial strength.
The historical rank and industry rank for Bottomline Technologies's Current Ratio or its related term are showing as below:
EPAY's Current Ratio is not ranked *
in the Software industry.
Industry Median: 1.79 * Ranked among companies with meaningful Current Ratio only.
Bottomline Technologies Current Ratio Historical Data
The historical data trend for Bottomline Technologies's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Bottomline Technologies's Current Ratio
For the Software - Infrastructure subindustry, Bottomline Technologies's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Bottomline Technologies's Current Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Bottomline Technologies's Current Ratio distribution charts can be found below:
* The bar in red indicates where Bottomline Technologies's Current Ratio falls into.
Bottomline Technologies Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Bottomline Technologies's Current Ratio for the fiscal year that ended in Jun. 2021 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Bottomline Technologies (NAS:EPAY) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Bottomline Technologies Current Ratio Related Terms
Thank you for viewing the detailed overview of Bottomline Technologies's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Bottomline Technologies (Bottomline Technologies) Business Description
Bottomline Technologies Inc provides financial oriented solutions. It is a trusted and easy-to-use set of cloud-based digital banking, fraud prevention, payment, financial document, and healthcare solutions. Bottomline consists of four operating segments: Cloud Solutions segment provides customers predominately with SaaS technology offerings that facilitate electronic payment, electronic invoicing and spend management; Digital Banking segment provides solutions that are specifically designed for banking and financial institution customers; Payments and Transactional Documents segment is a supplier of software products that provide a range of financial business process management solutions; and Other segment consists of healthcare and cyber fraud and risk management operating segments.
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