Buddy TechnologiesASX:BUDOA Current Ratio is 0.72 as of Dec. 2021, which is 95% below its 10-year median of 14.28. The stock has 7 warning signs investors should review.
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. Buddy Technologies's current ratio for the quarter that ended in Dec. 2021 was 0.72.
Buddy Technologies has a current ratio of 0.72. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Buddy Technologies has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Buddy Technologies's Current Ratio or its related term are showing as below:
ASX:BUDOA'
s Current Ratio Range Over the Past 10 Years
Min: 0.31 Med: 14.28 Max: 69.37
Current: 0.72
During the past 13 years, Buddy Technologies's highest Current Ratio was 69.37. The lowest was 0.31. And the median was 14.28.
ASX:BUDOA's Current Ratio is not ranked
in the Software industry.
Industry Median: 1.81
vs ASX:BUDOA: 0.72
Buddy Technologies (ASX:BUDOA) 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.
Buddy Technologies Current Ratio Related Terms
Buddy Technologies Current Ratio Historical Data
* Premium members only.
The historical data trend for Buddy 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.
ASX:BUDOA vs CYRNQ, SEII, DCLT: Current Ratio Comparison
For the Software - Infrastructure subindustry, Buddy 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.
Buddy Technologies Current Ratio vs Software Industry
For the Software industry and Technology sector, Buddy Technologies's Current Ratio distribution charts can be found below:
* The bar in red indicates where Buddy Technologies'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.
Buddy Technologies (ASX:BUDOA) has a Current Ratio of 0.72 as of Dec. 2021. This is 95% below median its historical median of 14.28. Over the past decade, Buddy Technologies' Current Ratio has ranged from 0.31 to 69.37.
Is Buddy Technologies' Current Ratio too high?
Buddy Technologies' current Current Ratio of 0.72 is 95% below median its 10-year median of 14.28. Over the past 10 years, this metric has ranged from a low of 0.31 to a high of 69.37. The Software industry median Current Ratio is 1.81. Buddy Technologies' value of 0.72 is 60.2% below this industry median.
How does Buddy Technologies' Current Ratio compare to CYRNQ and SEII?
Buddy Technologies' Current Ratio of 0.72 can be compared against companies in the Software industry. The industry median Current Ratio is 1.81. Buddy Technologies' value of 0.72 is 60.2% below this benchmark. Historically, Buddy Technologies' own Current Ratio has ranged from 0.31 to 69.37 over the past decade. While the company's 10-year median is 14.28 vs. the industry median of 1.81, Buddy Technologies 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 a Software company?
The median Current Ratio among Software companies is 1.81, based on 2,863 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. Buddy Technologies's current Current Ratio of 0.72 is 60.2% 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 Software industry, the median Current Ratio is 1.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Buddy Technologies's current Current Ratio is 0.72, which is 95% below median its own 10-year median of 14.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Buddy Technologies stock overvalued right now?
Buddy Technologies (ASX:BUDOA) has a current Current Ratio of 0.72. The current Current Ratio is 0.72, which is 95% below median its 10-year median of 14.28 and 60.2% below the Software industry median of 1.81. 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 Buddy Technologies (ASX:BUDOA), the current Current Ratio is 0.72 as of Dec. 2021. 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.
Buddy Technologies Ltd is an IoT(Internet of Things) and a cloud-based technology company. The company's operating segment includes Commercial Business, Consumer Business, and Corporate. It generates maximum revenue from the Consumer Business segment that includes all the activities related to LIFX, which is the brand providing smart lighting solutions. Commercial Business includes Buddy Ohm, Buddy Cloud, and other Buddy Managed Services. Its geographical segments include Australia, North America, and EMEA(Europe, the Middle East & Africa).
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