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Arax Holdings (Arax Holdings) Current Ratio : 1.71 (As of Jan. 2024)


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What is Arax Holdings Current Ratio?

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. Arax Holdings's current ratio for the quarter that ended in Jan. 2024 was 1.71.

Arax Holdings has a current ratio of 1.71. It generally indicates good short-term financial strength.

The historical rank and industry rank for Arax Holdings's Current Ratio or its related term are showing as below:

ARAT' s Current Ratio Range Over the Past 10 Years
Min: 0.02   Med: 1.14   Max: 44.63
Current: 1.71

During the past 9 years, Arax Holdings's highest Current Ratio was 44.63. The lowest was 0.02. And the median was 1.14.

ARAT's Current Ratio is ranked worse than
52.22% of 2819 companies
in the Software industry
Industry Median: 1.79 vs ARAT: 1.71

Arax Holdings Current Ratio Historical Data

The historical data trend for Arax Holdings'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.

* Premium members only.

Arax Holdings Current Ratio Chart

Arax Holdings Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct20 Oct21 Oct22 Oct23
Current Ratio
Get a 7-Day Free Trial Premium Member Only - - - - 6.50

Arax Holdings Quarterly Data
Apr16 Jul16 Oct16 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Current Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.02 44.63 0.57 6.50 1.71

Competitive Comparison of Arax Holdings's Current Ratio

For the Software - Infrastructure subindustry, Arax Holdings'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.


Arax Holdings's Current Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Arax Holdings's Current Ratio distribution charts can be found below:

* The bar in red indicates where Arax Holdings's Current Ratio falls into.



Arax Holdings 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.

Arax Holdings's Current Ratio for the fiscal year that ended in Oct. 2023 is calculated as

Current Ratio (A: Oct. 2023 )=Total Current Assets (A: Oct. 2023 )/Total Current Liabilities (A: Oct. 2023 )
=1.676/0.258
=6.50

Arax Holdings's Current Ratio for the quarter that ended in Jan. 2024 is calculated as

Current Ratio (Q: Jan. 2024 )=Total Current Assets (Q: Jan. 2024 )/Total Current Liabilities (Q: Jan. 2024 )
=0.457/0.268
=1.71

* 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.


Arax Holdings  (OTCPK:ARAT) 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.


Arax Holdings Current Ratio Related Terms

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Arax Holdings (Arax Holdings) Business Description

Traded in Other Exchanges
N/A
Address
30 North Gould Street, Sheridan, WY, USA, 82801
Arax Holdings Corp invests in TechFin and blockchain-based software solutions companies. The primary focus of Arax is to fuse decentralized solutions with financial service providers within multiple markets and communication networks to bring blockchain to everyday life.

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