G8 EducationASX:GEM 54 Current Ratio is 0.29 as of Dec. 2025, which is 31% below its 10-year median of 0.42. GuruFocus rates ASX:GEM with a GF Score™ of 54/100 and a GF Value™ of A$1.17 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 262 Education companies, G8 Education ranks worse than 95.42% 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. G8 Education's current ratio for the quarter that ended in Dec. 2025 was 0.29.
G8 Education has a current ratio of 0.29. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If G8 Education 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 G8 Education's Current Ratio or its related term are showing as below:
ASX:GEM'
s Current Ratio Range Over the Past 10 Years
Min: 0.27 Med: 0.42 Max: 1.25
Current: 0.29
During the past 13 years, G8 Education's highest Current Ratio was 1.25. The lowest was 0.27. And the median was 0.42.
ASX:GEM's Current Ratio is ranked worse than 95.42% of 262
companies
in the Education industry
Industry Median: 1.505
vs ASX:GEM: 0.29
G8 Education (ASX:GEM) 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.
G8 Education Current Ratio Related Terms
G8 Education Current Ratio Historical Data
* Premium members only.
The historical data trend for G8 Education'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:GEM vs EDU, TAL, LAUR: Current Ratio Comparison
For the Education & Training Services subindustry, G8 Education'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.
G8 Education Current Ratio vs Education Industry
For the Education industry and Consumer Defensive sector, G8 Education's Current Ratio distribution charts can be found below:
* The bar in red indicates where G8 Education'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.
G8 Education (ASX:GEM) has a Current Ratio of 0.29 as of Dec. 2025. This is 31% below median its historical median of 0.42. Over the past decade, G8 Education's Current Ratio has ranged from 0.27 to 1.25. According to the industry distribution chart, G8 Education ranks #250 out of 262 companies in the Education industry, placing it in the top 95.4%.
Is G8 Education's Current Ratio too high?
G8 Education's current Current Ratio of 0.29 is 31% below median its 10-year median of 0.42. Over the past 10 years, this metric has ranged from a low of 0.27 to a high of 1.25. The Education industry median Current Ratio is 1.51. G8 Education's value of 0.29 is 80.7% below this industry median. Based on the distribution chart, G8 Education ranks #250 out of 262 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, G8 Education has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does G8 Education's Current Ratio compare to EDU and TAL?
According to the Education industry distribution chart, G8 Education ranks #250 out of 262 companies for Current Ratio. This places G8 Education in the lower half of its industry. The industry median Current Ratio is 1.51. G8 Education's value of 0.29 is 80.7% below this benchmark. Historically, G8 Education's own Current Ratio has ranged from 0.27 to 1.25 over the past decade. While the company's 10-year median is 0.42 vs. the industry median of 1.51, G8 Education 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 Education company?
The median Current Ratio among Education companies is 1.51, based on 262 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. G8 Education's current Current Ratio of 0.29 is 80.7% 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 Education industry, the median Current Ratio is 1.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. G8 Education's current Current Ratio is 0.29, which is 31% below median its own 10-year median of 0.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is G8 Education stock overvalued right now?
Based on GuruFocus' analysis, G8 Education (ASX:GEM) is currently considered Possible Value Trap. The stock's GF Value™ is A$1.17, compared to a current price of A$0.14 — trading 88% below its estimated fair value. The current Current Ratio is 0.29, which is 31% below median its 10-year median of 0.42 and 80.7% below the Education industry median of 1.51. G8 Education's overall GF Score™ is 54/100 with 6 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 G8 Education (ASX:GEM), the current Current Ratio is 0.29 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 G8 Education (ASX:GEM) Overvalued in 2026?
Based on GuruFocus' analysis, G8 Education stock appears to be undervalued.
The current stock price of A$0.14 is trading 88% below its estimated GF Value™ of A$1.17.
GuruFocus considers G8 Education to be Possible Value Trap.
Key valuation signals for ASX:GEM:
Current Ratio: 0.29 (31% below median its 10-year median of 0.42)
GF Value™: A$1.17 vs. price of A$0.14 (88% below fair value)
Industry Position: 80.7% below the Education median (#250 of 262)
No single metric tells the full story. See the ASX:GEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
G8 Education Ltd is a provider of quality early learning education and care, operating under a range of trusted brands. The company has one operating segment, being the operation of child care centers. G8 does not own the buildings from which its childcare centers operate.
54GF Score
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