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. Kailash Auto Finance's current ratio for the quarter that ended in Sep. 2020 was 120,066.00.
Kailash Auto Finance has a current ratio of 120,066.00. 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 Kailash Auto Finance's Current Ratio or its related term are showing as below:
BOM:511357's Current Ratio is not ranked *
in the Credit Services industry.
Industry Median: 4.96 * Ranked among companies with meaningful Current Ratio only.
Kailash Auto Finance (BOM:511357) 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.
Kailash Auto Finance Current Ratio Related Terms
Kailash Auto Finance Current Ratio Historical Data
* Premium members only.
The historical data trend for Kailash Auto Finance'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 Credit Services subindustry, Kailash Auto Finance'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.
Kailash Auto Finance Current Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Kailash Auto Finance's Current Ratio distribution charts can be found below:
* The bar in red indicates where Kailash Auto Finance'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.
Kailash Auto Finance (BOM:511357) has a Current Ratio of 120,066.00 as of Sep. 2020.
Is Kailash Auto Finance's Current Ratio too high?
Kailash Auto Finance's current Current Ratio is 120,066.00. The Credit Services industry median Current Ratio is 4.96. Kailash Auto Finance's value of 120,066.00 is 2420585.5% above this industry median.
How does Kailash Auto Finance's Current Ratio compare to LMFA?
Kailash Auto Finance's Current Ratio of 120,066.00 can be compared against companies in the Credit Services industry. The industry median Current Ratio is 4.96. Kailash Auto Finance's value of 120,066.00 is 2420585.5% above 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 a Credit Services company?
The median Current Ratio among Credit Services companies is 4.96, based on 391 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. Kailash Auto Finance's current Current Ratio of 120,066.00 is 2420585.5% 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 Credit Services industry, the median Current Ratio is 4.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kailash Auto Finance's current Current Ratio is 120,066.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kailash Auto Finance stock overvalued right now?
Kailash Auto Finance (BOM:511357) has a current Current Ratio of 120,066.00. The current Current Ratio is 120,066.00 and 2420585.5% above the Credit Services industry median of 4.96. 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 Kailash Auto Finance (BOM:511357), the current Current Ratio is 120,066.00 as of Sep. 2020. 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.
Kailash Auto Finance Ltd is an India-based non-banking finance company. The company is primarily focused in providing inter-corporate loans, personal loans, loans against shares and securities, loans against properties, trade financing, bills discounting, trading in shares and securities and arbitrage business in the stock market and trading in shares and securities. It generates maximum revenue from Interest Income.
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