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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. Azure Power Global's current ratio for the quarter that ended in Mar. 2024 was 0.50.
Azure Power Global has a current ratio of 0.50. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Azure Power Global 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 Azure Power Global's Current Ratio or its related term are showing as below:
AZREF's Current Ratio is not ranked *
in the Utilities - Independent Power Producers industry.
Industry Median: 1.35 * Ranked among companies with meaningful Current Ratio only.
Azure Power Global (OTCPK:AZREF) 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.
Azure Power Global Current Ratio Related Terms
Azure Power Global Current Ratio Historical Data
* Premium members only.
The historical data trend for Azure Power Global'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.
AZREF vs SAFX, VGAS, STEM: Current Ratio Comparison
For the Utilities - Renewable subindustry, Azure Power Global'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.
Azure Power Global Current Ratio vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Azure Power Global's Current Ratio distribution charts can be found below:
* The bar in red indicates where Azure Power Global'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.
Azure Power Global (AZREF) has a Current Ratio of 0.50 as of Mar. 2024.
Is Azure Power Global's Current Ratio too high?
Azure Power Global's current Current Ratio is 0.50. The Utilities - Independent Power Producers industry median Current Ratio is 1.35. Azure Power Global's value of 0.50 is 63% below this industry median. Overall, Azure Power Global has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Azure Power Global's Current Ratio compare to SAFX and VGAS?
Azure Power Global's Current Ratio of 0.50 can be compared against companies in the Utilities - Independent Power Producers industry. The industry median Current Ratio is 1.35. Azure Power Global's value of 0.50 is 63% below this benchmark. 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 Utilities - Independent Power Producers company?
The median Current Ratio among Utilities - Independent Power Producers companies is 1.35, based on 451 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. Azure Power Global's current Current Ratio of 0.50 is 63% 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 Utilities - Independent Power Producers industry, the median Current Ratio is 1.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Azure Power Global's current Current Ratio is 0.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Azure Power Global stock overvalued right now?
Azure Power Global (AZREF) has a current Current Ratio of 0.50. The current Current Ratio is 0.50 and 63% below the Utilities - Independent Power Producers industry median of 1.35. Azure Power Global's overall GF Score™ is 12/100. 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 Azure Power Global (AZREF), the current Current Ratio is 0.50 as of Mar. 2024. 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.
Azure Power Global Ltd is a utility-scale renewable energy project developer and operator. It is engaged in the development, construction, ownership, operation, maintenance, and management of renewable energy assets based on long-term contracts (Power Purchase Agreements or PPA) with Indian Government energy distribution companies, as well as other Indian non-governmental energy distribution companies and commercial customers.
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