Norwood SystemsASX:NOR -16.13% Current Ratio is 0.37 as of Dec. 2025, which is 16% below its 10-year median of 0.44. The stock has 4 warning signs investors should review. Among 371 Telecommunication Services companies, Norwood Systems ranks worse than 94.07% 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. Norwood Systems's current ratio for the quarter that ended in Dec. 2025 was 0.37.
Norwood Systems has a current ratio of 0.37. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Norwood Systems 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 Norwood Systems's Current Ratio or its related term are showing as below:
ASX:NOR'
s Current Ratio Range Over the Past 10 Years
Min: 0.08 Med: 0.44 Max: 4.84
Current: 0.37
During the past 13 years, Norwood Systems's highest Current Ratio was 4.84. The lowest was 0.08. And the median was 0.44.
ASX:NOR's Current Ratio is ranked worse than 94.07% of 371
companies
in the Telecommunication Services industry
Industry Median: 1.13
vs ASX:NOR: 0.37
Norwood Systems (ASX:NOR) 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.
Norwood Systems Current Ratio Related Terms
Norwood Systems Current Ratio Historical Data
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The historical data trend for Norwood Systems'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.
For the Telecom Services subindustry, Norwood Systems'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.
Norwood Systems Current Ratio vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Norwood Systems's Current Ratio distribution charts can be found below:
* The bar in red indicates where Norwood Systems'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.
Norwood Systems (ASX:NOR) has a Current Ratio of 0.37 as of Dec. 2025. This is 16% below median its historical median of 0.44. Over the past decade, Norwood Systems' Current Ratio has ranged from 0.08 to 4.84. According to the industry distribution chart, Norwood Systems ranks #349 out of 371 companies in the Telecommunication Services industry, placing it in the top 94.1%.
Is Norwood Systems' Current Ratio too high?
Norwood Systems' current Current Ratio of 0.37 is 16% below median its 10-year median of 0.44. Over the past 10 years, this metric has ranged from a low of 0.08 to a high of 4.84. The Telecommunication Services industry median Current Ratio is 1.13. Norwood Systems' value of 0.37 is 67.3% below this industry median. Based on the distribution chart, Norwood Systems ranks #349 out of 371 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers.
How does Norwood Systems' Current Ratio compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Norwood Systems ranks #349 out of 371 companies for Current Ratio. This places Norwood Systems in the lower half of its industry. The industry median Current Ratio is 1.13. Norwood Systems' value of 0.37 is 67.3% below this benchmark. Historically, Norwood Systems' own Current Ratio has ranged from 0.08 to 4.84 over the past decade. While the company's 10-year median is 0.44 vs. the industry median of 1.13, Norwood Systems 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 Telecommunication Services company?
The median Current Ratio among Telecommunication Services companies is 1.13, based on 371 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. Norwood Systems's current Current Ratio of 0.37 is 67.3% 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 Telecommunication Services industry, the median Current Ratio is 1.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Norwood Systems's current Current Ratio is 0.37, which is 16% below median its own 10-year median of 0.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Norwood Systems stock overvalued right now?
Based on GuruFocus' analysis, Norwood Systems (ASX:NOR) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.06, compared to a current price of A$0.03 — trading 56.7% below its estimated fair value. The current Current Ratio is 0.37, which is 16% below median its 10-year median of 0.44 and 67.3% below the Telecommunication Services industry median of 1.13. 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 Norwood Systems (ASX:NOR), the current Current Ratio is 0.37 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.
Norwood Systems Ltd develops cognitive, voice, messaging, and data services for carriers, consumers, and enterprises globally. The company focuses on delivering communication applications that simplify access to telecommunications services. Its offerings include a platform for Cognitive Voice services designed for diverse use cases, as well as Visual Voicemail solutions for telecommunications providers. Norwood provides enterprise communication services through SecondLine and related mobility applications, aimed at improving cost efficiency, ease of management, and regulatory compliance. The company's business segment is the provision of voice telecommunication services. It operates in one segment, voice telecommunication services.
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