5E Advanced MaterialsASX:5EA 17 Current Ratio is 6.50 as of Mar. 2026, which is 364% above its 10-year median of 1.40. GuruFocus rates ASX:5EA with a GF Score™ of 17/100. The stock has 1 warning sign investors should review. Among 1,609 Chemicals companies, 5E Advanced Materials ranks better than 91.49% 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. 5E Advanced Materials's current ratio for the quarter that ended in Mar. 2026 was 6.50.
5E Advanced Materials has a current ratio of 6.50. 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 5E Advanced Materials's Current Ratio or its related term are showing as below:
ASX:5EA'
s Current Ratio Range Over the Past 10 Years
Min: 0.15 Med: 1.4 Max: 24.31
Current: 6.5
During the past 5 years, 5E Advanced Materials's highest Current Ratio was 24.31. The lowest was 0.15. And the median was 1.40.
ASX:5EA's Current Ratio is ranked better than 91.49% of 1609
companies
in the Chemicals industry
Industry Median: 1.89
vs ASX:5EA: 6.50
5E Advanced Materials (ASX:5EA) 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.
5E Advanced Materials Current Ratio Related Terms
5E Advanced Materials Current Ratio Historical Data
* Premium members only.
The historical data trend for 5E Advanced Materials'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.
ASX:5EA vs LOOP, BIOF, NTIC: Current Ratio Comparison
For the Specialty Chemicals subindustry, 5E Advanced Materials'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.
5E Advanced Materials Current Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, 5E Advanced Materials's Current Ratio distribution charts can be found below:
* The bar in red indicates where 5E Advanced Materials'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.
5E Advanced Materials (ASX:5EA) has a Current Ratio of 6.50 as of Mar. 2026. This is 364% above median its historical median of 1.40. Over the past decade, 5E Advanced Materials' Current Ratio has ranged from 0.15 to 24.31. According to the industry distribution chart, 5E Advanced Materials ranks #137 out of 1609 companies in the Chemicals industry, placing it in the top 8.5%.
Is 5E Advanced Materials' Current Ratio too high?
5E Advanced Materials' current Current Ratio of 6.50 is 364% above median its 10-year median of 1.40. Over the past 10 years, this metric has ranged from a low of 0.15 to a high of 24.31. The Chemicals industry median Current Ratio is 1.89. 5E Advanced Materials' value of 6.50 is 243.9% above this industry median. Based on the distribution chart, 5E Advanced Materials ranks #137 out of 1609 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, 5E Advanced Materials has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does 5E Advanced Materials' Current Ratio compare to LOOP and BIOF?
According to the Chemicals industry distribution chart, 5E Advanced Materials ranks #137 out of 1609 companies for Current Ratio. This places 5E Advanced Materials in the top 9% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.89. 5E Advanced Materials' value of 6.50 is 243.9% above this benchmark. Historically, 5E Advanced Materials' own Current Ratio has ranged from 0.15 to 24.31 over the past decade. While the company's 10-year median is 1.40 vs. the industry median of 1.89, 5E Advanced Materials 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 Chemicals company?
The median Current Ratio among Chemicals companies is 1.89, based on 1,609 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. 5E Advanced Materials's current Current Ratio of 6.50 is 243.9% 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 Chemicals industry, the median Current Ratio is 1.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. 5E Advanced Materials's current Current Ratio is 6.50, which is 364% above median its own 10-year median of 1.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is 5E Advanced Materials stock overvalued right now?
5E Advanced Materials (ASX:5EA) has a current Current Ratio of 6.50. The current Current Ratio is 6.50, which is 364% above median its 10-year median of 1.40 and 243.9% above the Chemicals industry median of 1.89. 5E Advanced Materials' overall GF Score™ is 17/100 with 1 warning sign 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 5E Advanced Materials (ASX:5EA), the current Current Ratio is 6.50 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.
5E Advanced Materials Inc is an exploration stage company focused on becoming a vertically integrated supplier of specialty boron and boron derivative materials whose mission is to enable decarbonization, increase food security, and ensure domestic supply of critical materials. It has a project located in southern California underpinned by a mineral resource that includes boron and lithium, with the boron being contained in a conventional boron mineral known as colemanite. The company seeks to extract and process the minerals into boric acid, boron materials, lithium carbonate, and potentially other co-products on a commercial scale.
17GF Score
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