What is Australian Ethical Investment Current Ratio?
Australian Ethical InvestmentASX:AEF -1.66%98 Current Ratio is 2.60 as of Dec. 2025, which is 6% above its 10-year median of 2.45. GuruFocus rates ASX:AEF with a GF Score™ of 98/100 and a GF Value™ of A$6.36 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 708 Asset Management companies, Australian Ethical Investment ranks worse than 53.25% on this metric.
Australian Ethical Investment has a current ratio of 2.60. It generally indicates good short-term financial strength.
The historical rank and industry rank for Australian Ethical Investment's Current Ratio or its related term are showing as below:
ASX:AEF'
s Current Ratio Range Over the Past 10 Years
Min: 1.88 Med: 2.45 Max: 3.6
Current: 2.6
During the past 13 years, Australian Ethical Investment's highest Current Ratio was 3.60. The lowest was 1.88. And the median was 2.45.
ASX:AEF's Current Ratio is ranked worse than 53.25% of 708
companies
in the Asset Management industry
Industry Median: 3.015
vs ASX:AEF: 2.60
Australian Ethical Investment (ASX:AEF) 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.
Australian Ethical Investment Current Ratio Related Terms
Australian Ethical Investment 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.
For the Asset Management subindustry, Australian Ethical Investment'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.
Australian Ethical Investment Current Ratio vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Australian Ethical Investment's Current Ratio distribution charts can be found below:
* The bar in red indicates where Australian Ethical Investment'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.
Australian Ethical Investment (ASX:AEF) has a Current Ratio of 2.60 as of Dec. 2025. This is near median its historical median of 2.45. Over the past decade, Australian Ethical Investment's Current Ratio has ranged from 1.88 to 3.60. According to the industry distribution chart, Australian Ethical Investment ranks #377 out of 708 companies in the Asset Management industry, placing it in the top 53.2%.
Is Australian Ethical Investment's Current Ratio too high?
Australian Ethical Investment's current Current Ratio of 2.60 is near median its 10-year median of 2.45. Over the past 10 years, this metric has ranged from a low of 1.88 to a high of 3.60. The Asset Management industry median Current Ratio is 3.02. Australian Ethical Investment's value of 2.60 is 13.8% below this industry median. Based on the distribution chart, Australian Ethical Investment ranks #377 out of 708 companies in the Asset Management industry, which is below the industry midpoint. Overall, Australian Ethical Investment has a GF Score™ of 98/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Australian Ethical Investment's Current Ratio compare to BLK and BX?
According to the Asset Management industry distribution chart, Australian Ethical Investment ranks #377 out of 708 companies for Current Ratio. This places Australian Ethical Investment in the lower half of its industry. The industry median Current Ratio is 3.02. Australian Ethical Investment's value of 2.60 is 13.8% below this benchmark. Historically, Australian Ethical Investment's own Current Ratio has ranged from 1.88 to 3.60 over the past decade. While the company's 10-year median is 2.45 vs. the industry median of 3.02, Australian Ethical Investment has consistently been below 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 an Asset Management company?
The median Current Ratio among Asset Management companies is 3.02, based on 708 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. Australian Ethical Investment's current Current Ratio of 2.60 is 13.8% below 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 Asset Management industry, the median Current Ratio is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Australian Ethical Investment's current Current Ratio is 2.60, which is near median its own 10-year median of 2.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Ethical Investment stock overvalued right now?
Based on GuruFocus' analysis, Australian Ethical Investment (ASX:AEF) is currently considered Possible Value Trap. The stock's GF Value™ is A$6.36, compared to a current price of A$4.14 — trading 34.9% below its estimated fair value. The current Current Ratio is 2.60, which is near median its 10-year median of 2.45 and 13.8% below the Asset Management industry median of 3.02. Australian Ethical Investment's overall GF Score™ is 98/100 with 2 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 Australian Ethical Investment (ASX:AEF), the current Current Ratio is 2.60 as of Dec. 2025. 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 Australian Ethical Investment (ASX:AEF) Overvalued in 2026?
Based on GuruFocus' analysis, Australian Ethical Investment stock appears to be undervalued.
The current stock price of A$4.14 is trading 34.9% below its estimated GF Value™ of A$6.36.
GuruFocus considers Australian Ethical Investment to be Possible Value Trap.
Key valuation signals for ASX:AEF:
Current Ratio: 2.60 (near median its 10-year median of 2.45)
GF Value™: A$6.36 vs. price of A$4.14 (34.9% below fair value)
Industry Position: 13.8% below the Asset Management median (#377 of 708)
No single metric tells the full story. See the ASX:AEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Australian Ethical Investment Business Description
Australian Ethical Investment Ltd is an Australian-based company engaged in the operating segment of Funds Management. The company is involved in acting as the responsible entity for a range of public offer ethically managed investment schemes and acting as the Trustee of the Australian Ethical Retail Superannuation Fund (Super Fund). The various products offered by the company are Super, Managed funds, ETFs, Insurance, and Pension.
98GF Score
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