Forte Energy NLASX:FTE Current Ratio is 2.15 as of Dec. 2016, which is 109% above its 10-year median of 1.03. The stock has 6 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. Forte Energy NL's current ratio for the quarter that ended in Dec. 2016 was 2.15.
Forte Energy NL has a current ratio of 2.15. It generally indicates good short-term financial strength.
The historical rank and industry rank for Forte Energy NL's Current Ratio or its related term are showing as below:
ASX:FTE'
s Current Ratio Range Over the Past 10 Years
Min: 0.03 Med: 1.03 Max: 5.16
Current: 2.15
During the past 11 years, Forte Energy NL's highest Current Ratio was 5.16. The lowest was 0.03. And the median was 1.03.
ASX:FTE's Current Ratio is not ranked
in the Software industry.
Industry Median: 1.81
vs ASX:FTE: 2.15
Forte Energy NL (ASX:FTE) 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.
Forte Energy NL Current Ratio Related Terms
Forte Energy NL Current Ratio Historical Data
* Premium members only.
The historical data trend for Forte Energy NL'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:FTE vs ZIMCF, MCCX, INTV: Current Ratio Comparison
For the Software - Application subindustry, Forte Energy NL'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.
Forte Energy NL Current Ratio vs Software Industry
For the Software industry and Technology sector, Forte Energy NL's Current Ratio distribution charts can be found below:
* The bar in red indicates where Forte Energy NL'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.
Forte Energy NL (ASX:FTE) has a Current Ratio of 2.15 as of Dec. 2016. This is 109% above median its historical median of 1.03. Over the past decade, Forte Energy NL's Current Ratio has ranged from 0.03 to 5.16.
Is Forte Energy NL's Current Ratio too high?
Forte Energy NL's current Current Ratio of 2.15 is 109% above median its 10-year median of 1.03. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 5.16. The Software industry median Current Ratio is 1.81. Forte Energy NL's value of 2.15 is 18.8% above this industry median.
How does Forte Energy NL's Current Ratio compare to ZIMCF and MCCX?
Forte Energy NL's Current Ratio of 2.15 can be compared against companies in the Software industry. The industry median Current Ratio is 1.81. Forte Energy NL's value of 2.15 is 18.8% above this benchmark. Historically, Forte Energy NL's own Current Ratio has ranged from 0.03 to 5.16 over the past decade. While the company's 10-year median is 1.03 vs. the industry median of 1.81, Forte Energy NL 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 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. Forte Energy NL's current Current Ratio of 2.15 is 18.8% 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 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. Forte Energy NL's current Current Ratio is 2.15, which is 109% above median its own 10-year median of 1.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forte Energy NL stock overvalued right now?
Forte Energy NL (ASX:FTE) has a current Current Ratio of 2.15. The current Current Ratio is 2.15, which is 109% above median its 10-year median of 1.03 and 18.8% above 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 Forte Energy NL (ASX:FTE), the current Current Ratio is 2.15 as of Dec. 2016. 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.
BOS Global Holdings Ltd is an Australian software company which focuses on creating enterprise productivity solutions for the global workforce market. Its products include BOS360 Work Patterns, BOSMeet, BOSTime, and BOSAutomate. The BOS360 Work Patterns captures a digital footprint of worker's activity and presents it in a visual and powerful format that offers awareness driving efficiency and productive behavior; the BOSMeet is meeting management software; the BOSTime is automatic time an activity tracker; and the BOSAutomate is a complete document and records management suite which offers document management and electronic records management. The company serves its customer in Australia, Asia, UK, Europe and North America.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:FTE has been successfully added to your 