Step One ClothingASX:STP -3.57%39 Current Ratio is 5.54 as of Dec. 2025, which is 4% above its 10-year median of 5.32. GuruFocus rates ASX:STP with a GF Score™ of 39/100 and a GF Value™ of A$0.64 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,132 Retail - Cyclical companies, Step One Clothing ranks better than 91.96% 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. Step One Clothing's current ratio for the quarter that ended in Dec. 2025 was 5.54.
Step One Clothing has a current ratio of 5.54. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Step One Clothing's Current Ratio or its related term are showing as below:
ASX:STP'
s Current Ratio Range Over the Past 10 Years
Min: 4.16 Med: 5.32 Max: 6.97
Current: 5.54
During the past 5 years, Step One Clothing's highest Current Ratio was 6.97. The lowest was 4.16. And the median was 5.32.
ASX:STP's Current Ratio is ranked better than 91.96% of 1132
companies
in the Retail - Cyclical industry
Industry Median: 1.58
vs ASX:STP: 5.54
Step One Clothing (ASX:STP) 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.
Step One Clothing Current Ratio Related Terms
Step One Clothing Current Ratio Historical Data
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The historical data trend for Step One Clothing'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:STP vs TJX, ROST, BURL: Current Ratio Comparison
For the Apparel Retail subindustry, Step One Clothing'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.
Step One Clothing Current Ratio vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Step One Clothing's Current Ratio distribution charts can be found below:
* The bar in red indicates where Step One Clothing'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.
Step One Clothing (ASX:STP) has a Current Ratio of 5.54 as of Dec. 2025. This is near median its historical median of 5.32. Over the past decade, Step One Clothing's Current Ratio has ranged from 4.16 to 6.97. According to the industry distribution chart, Step One Clothing ranks #91 out of 1132 companies in the Retail - Cyclical industry, placing it in the top 8%.
Is Step One Clothing's Current Ratio too high?
Step One Clothing's current Current Ratio of 5.54 is near median its 10-year median of 5.32. Over the past 10 years, this metric has ranged from a low of 4.16 to a high of 6.97. The Retail - Cyclical industry median Current Ratio is 1.58. Step One Clothing's value of 5.54 is 250.6% above this industry median. Based on the distribution chart, Step One Clothing ranks #91 out of 1132 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Step One Clothing has a GF Score™ of 39/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Step One Clothing's Current Ratio compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Step One Clothing ranks #91 out of 1132 companies for Current Ratio. This places Step One Clothing in the top 8% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.58. Step One Clothing's value of 5.54 is 250.6% above this benchmark. Historically, Step One Clothing's own Current Ratio has ranged from 4.16 to 6.97 over the past decade. While the company's 10-year median is 5.32 vs. the industry median of 1.58, Step One Clothing 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 Retail - Cyclical company?
The median Current Ratio among Retail - Cyclical companies is 1.58, based on 1,132 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. Step One Clothing's current Current Ratio of 5.54 is 250.6% 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 Retail - Cyclical industry, the median Current Ratio is 1.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Step One Clothing's current Current Ratio is 5.54, which is near median its own 10-year median of 5.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Step One Clothing stock overvalued right now?
Based on GuruFocus' analysis, Step One Clothing (ASX:STP) is currently considered Significantly Undervalued. The stock's GF Value™ is A$0.64, compared to a current price of A$0.14 — trading 78.9% below its estimated fair value. The current Current Ratio is 5.54, which is near median its 10-year median of 5.32 and 250.6% above the Retail - Cyclical industry median of 1.58. Step One Clothing's overall GF Score™ is 39/100 with 3 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 Step One Clothing (ASX:STP), the current Current Ratio is 5.54 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 Step One Clothing (ASX:STP) Overvalued in 2026?
Based on GuruFocus' analysis, Step One Clothing stock appears to be undervalued.
The current stock price of A$0.14 is trading 78.9% below its estimated GF Value™ of A$0.64.
GuruFocus considers Step One Clothing to be Significantly Undervalued.
Key valuation signals for ASX:STP:
Current Ratio: 5.54 (near median its 10-year median of 5.32)
GF Value™: A$0.64 vs. price of A$0.14 (78.9% below fair value)
Industry Position: 250.6% above the Retail - Cyclical median (#91 of 1132)
No single metric tells the full story. See the ASX:STP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Step One Clothing Ltd is a direct-to-consumer online retailer for men's undergarments. Its products comprise Boxer Brief, Trunks, and Boxer Breif+Fly. Its group is organized into three operating segments, being online retail sales for Australia, the United Kingdom, and the United States of America, however, these segments are aggregated into one reportable segment.
39GF Score
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