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. Constellation Technologies's current ratio for the quarter that ended in Jun. 2024 was 2.62.
Constellation Technologies has a current ratio of 2.62. It generally indicates good short-term financial strength.
The historical rank and industry rank for Constellation Technologies's Current Ratio or its related term are showing as below:
ASX:CT1'
s Current Ratio Range Over the Past 10 Years
Min: 0.21 Med: 3.07 Max: 12.79
Current: 2.62
During the past 13 years, Constellation Technologies's highest Current Ratio was 12.79. The lowest was 0.21. And the median was 3.07.
ASX:CT1's Current Ratio is ranked better than 68.12% of 2823
companies
in the Software industry
Industry Median: 1.78
vs ASX:CT1: 2.62
Constellation Technologies 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.
Competitive Comparison of Constellation Technologies's Current Ratio
For the Information Technology Services subindustry, Constellation 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.
Constellation Technologies's Current Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Constellation Technologies's Current Ratio distribution charts can be found below:
* The bar in red indicates where Constellation Technologies's Current Ratio falls into.
Constellation Technologies 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.
* 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.
Constellation Technologies (ASX:CT1) 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.
Constellation Technologies Current Ratio Related Terms
Thank you for viewing the detailed overview of Constellation Technologies's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Constellation Technologies Ltd specializes in Internet of Things (IoT) Product Development and product Management for industry and government applications. The company offers IoT devices that can capture critical data points across a wide range of applications, providing its customers with solutions that support multiple communication networks and sensor customisation. The Group has identified one reportable segment; which is the sale and commercialisation of IoT Solutions within Australia. The company generates revenue from Monitor tag revenue, Monitoring revenue, Consulting revenue, and Labour-hire revenue. The company generates the majority of its revenue from Monitoring revenue.
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