Applied OptoelectronicsAAOI -6.18%46 Current Ratio is 3.83 as of Mar. 2026, which is 82% above its 10-year median of 2.11. GuruFocus rates AAOI with a GF Score™ of 46/100 and a GF Value™ of $20.27 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,496 Hardware companies, Applied Optoelectronics ranks better than 80.41% on this metric.
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. Applied Optoelectronics's current ratio for the quarter that ended in Mar. 2026 was 3.83.
Applied Optoelectronics has a current ratio of 3.83. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Applied Optoelectronics's Current Ratio or its related term are showing as below:
AAOI'
s Current Ratio Range Over the Past 10 Years
Min: 0.77 Med: 2.11 Max: 3.83
Current: 3.83
During the past 13 years, Applied Optoelectronics's highest Current Ratio was 3.83. The lowest was 0.77. And the median was 2.11.
AAOI's Current Ratio is ranked better than 80.41% of 2496
companies
in the Hardware industry
Industry Median: 1.96
vs AAOI: 3.83
Applied Optoelectronics (NAS:AAOI) 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.
Applied Optoelectronics Current Ratio Related Terms
Applied Optoelectronics Current Ratio Historical Data
* 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.
AAOI vs VIAV, ZBRA, VSAT: Current Ratio Comparison
For the Communication Equipment subindustry, Applied Optoelectronics'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.
Applied Optoelectronics Current Ratio vs Hardware Industry
For the Hardware industry and Technology sector, Applied Optoelectronics's Current Ratio distribution charts can be found below:
* The bar in red indicates where Applied Optoelectronics's Current Ratio falls into.
* 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.
Applied Optoelectronics (AAOI) has a Current Ratio of 3.83 as of Mar. 2026. This is 82% above median its historical median of 2.11. Over the past decade, Applied Optoelectronics' Current Ratio has ranged from 0.77 to 3.83. According to the industry distribution chart, Applied Optoelectronics ranks #489 out of 2496 companies in the Hardware industry, placing it in the top 19.6%.
Is Applied Optoelectronics' Current Ratio too high?
Applied Optoelectronics' current Current Ratio of 3.83 is 82% above median its 10-year median of 2.11. Over the past 10 years, this metric has ranged from a low of 0.77 to a high of 3.83. The Hardware industry median Current Ratio is 1.96. Applied Optoelectronics' value of 3.83 is 95.4% above this industry median. Based on the distribution chart, Applied Optoelectronics ranks #489 out of 2496 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Applied Optoelectronics has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Optoelectronics' Current Ratio compare to VIAV and ZBRA?
According to the Hardware industry distribution chart, Applied Optoelectronics ranks #489 out of 2496 companies for Current Ratio. This places Applied Optoelectronics in the top 20% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.96. Applied Optoelectronics' value of 3.83 is 95.4% above this benchmark. Historically, Applied Optoelectronics' own Current Ratio has ranged from 0.77 to 3.83 over the past decade. While the company's 10-year median is 2.11 vs. the industry median of 1.96, Applied Optoelectronics has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Hardware company?
The median Current Ratio among Hardware companies is 1.96, based on 2,496 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Optoelectronics's current Current Ratio of 3.83 is 95.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Hardware industry, the median Current Ratio is 1.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Optoelectronics's current Current Ratio is 3.83, which is 82% above median its own 10-year median of 2.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Optoelectronics stock overvalued right now?
Based on GuruFocus' analysis, Applied Optoelectronics (AAOI) is currently considered Significantly Overvalued. The stock's GF Value™ is $20.27, compared to a current price of $139.00 — trading 585.7% above its estimated fair value. The current Current Ratio is 3.83, which is 82% above median its 10-year median of 2.11 and 95.4% above the Hardware industry median of 1.96. Applied Optoelectronics' overall GF Score™ is 46/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Applied Optoelectronics (AAOI), the current Current Ratio is 3.83 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Applied Optoelectronics (AAOI) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Optoelectronics stock appears to be overvalued.
The current stock price of $139.00 is trading 585.7% above its estimated GF Value™ of $20.27.
GuruFocus considers Applied Optoelectronics to be Significantly Overvalued.
Key valuation signals for AAOI:
Current Ratio: 3.83 (82% above median its 10-year median of 2.11)
GF Value™: $20.27 vs. price of $139.00 (585.7% above fair value)
Industry Position: 95.4% above the Hardware median (#489 of 2496)
No single metric tells the full story. See the AAOI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Optoelectronics Inc is a provider of fiber-optic networking products, for four networking end-markets; internet data center, CATV, telecom, and FTTH. The Company designs and manufactures a wide range of optical communications products at varying levels of integration, from components, subassemblies, and modules to meet turn-key equipment. Through direct sales personnel, and manufacturing teams in the United States, China, and Taiwan, the company coordinates with customers to determine product design, qualifications, and performance. The Company has manufacturing and research and development facilities located in the U.S., Taiwan, and China.
46GF Score
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