Locate TechnologiesASX:LOC Current Ratio is 2.64 as of Jun. 2025, which is 11% below its 10-year median of 2.97. The stock has 3 warning signs investors should review. Among 2,866 Software companies, Locate Technologies ranks better than 68.32% 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. Locate Technologies's current ratio for the quarter that ended in Jun. 2025 was 2.64.
Locate Technologies has a current ratio of 2.64. It generally indicates good short-term financial strength.
The historical rank and industry rank for Locate Technologies's Current Ratio or its related term are showing as below:
ASX:LOC'
s Current Ratio Range Over the Past 10 Years
Min: 2.13 Med: 2.97 Max: 4.15
Current: 2.64
During the past 4 years, Locate Technologies's highest Current Ratio was 4.15. The lowest was 2.13. And the median was 2.97.
ASX:LOC's Current Ratio is ranked better than 68.32% of 2866
companies
in the Software industry
Industry Median: 1.815
vs ASX:LOC: 2.64
Locate Technologies (ASX:LOC) 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.
Locate Technologies Current Ratio Related Terms
Locate Technologies Current Ratio Historical Data
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The historical data trend for Locate 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:LOC vs CRM, SHOP, UBER: Current Ratio Comparison
For the Software - Application subindustry, Locate 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.
Locate Technologies Current Ratio vs Software Industry
For the Software industry and Technology sector, Locate Technologies's Current Ratio distribution charts can be found below:
* The bar in red indicates where Locate 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.
Locate Technologies (ASX:LOC) has a Current Ratio of 2.64 as of Jun. 2025. This is 11% below median its historical median of 2.97. Over the past decade, Locate Technologies' Current Ratio has ranged from 2.13 to 4.15. According to the industry distribution chart, Locate Technologies ranks #908 out of 2866 companies in the Software industry, placing it in the top 31.7%.
Is Locate Technologies' Current Ratio too high?
Locate Technologies' current Current Ratio of 2.64 is 11% below median its 10-year median of 2.97. Over the past 10 years, this metric has ranged from a low of 2.13 to a high of 4.15. The Software industry median Current Ratio is 1.82. Locate Technologies' value of 2.64 is 45.5% above this industry median. Based on the distribution chart, Locate Technologies ranks #908 out of 2866 companies in the Software industry, which is above the industry midpoint.
How does Locate Technologies' Current Ratio compare to CRM and SHOP?
According to the Software industry distribution chart, Locate Technologies ranks #908 out of 2866 companies for Current Ratio. This puts Locate Technologies in the upper half of its industry. The industry median Current Ratio is 1.82. Locate Technologies' value of 2.64 is 45.5% above this benchmark. Historically, Locate Technologies' own Current Ratio has ranged from 2.13 to 4.15 over the past decade. While the company's 10-year median is 2.97 vs. the industry median of 1.82, Locate Technologies 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 1.82, based on 2,866 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. Locate Technologies's current Current Ratio of 2.64 is 45.5% 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 1.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Locate Technologies's current Current Ratio is 2.64, which is 11% below median its own 10-year median of 2.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Locate Technologies stock overvalued right now?
Locate Technologies (ASX:LOC) has a current Current Ratio of 2.64. The stock's GF Value™ is A$0.08, compared to a current price of A$0.06 — trading 30% below its estimated fair value. The current Current Ratio is 2.64, which is 11% below median its 10-year median of 2.97 and 45.5% above the Software industry median of 1.82. 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 Locate Technologies (ASX:LOC), the current Current Ratio is 2.64 as of Jun. 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.
Locate Technologies Ltd is a provider of real-time tracking delivery solutions. The group's Locate2u is a Software-as-a-Service (SaaS) platform, designed to manage and optimise deliveries for couriers, retailers, and e-commerce businesses, and its Zoom2u Platform provides an Australia-wide marketplace connecting customers to a network of local drivers for fast deliveries. The group has two operating segments: Zoom2u and 2u Enterprises, and Locate2u. Maximum revenue is generated from the Zoom2u and 2u Enterprises segment, which provides delivery and tracking services to customers via an internally developed platform, allowing customers to arrange for the delivery of items. This segment also includes the Shred2u business, offering on-site and off-site document shredding services.
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