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. Allied Digital Services's current ratio for the quarter that ended in Mar. 2024 was 3.60.
Allied Digital Services has a current ratio of 3.60. 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 Allied Digital Services's Current Ratio or its related term are showing as below:
BOM:532875'
s Current Ratio Range Over the Past 10 Years
Min: 1.25 Med: 2.71 Max: 3.74
Current: 3.6
During the past 13 years, Allied Digital Services's highest Current Ratio was 3.74. The lowest was 1.25. And the median was 2.71.
BOM:532875's Current Ratio is ranked better than 78.47% of 2833
companies
in the Software industry
Industry Median: 1.78
vs BOM:532875: 3.60
Allied Digital Services Current Ratio Historical Data
* 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.
Competitive Comparison of Allied Digital Services's Current Ratio
For the Information Technology Services subindustry, Allied Digital Services'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.
Allied Digital Services's Current Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Allied Digital Services's Current Ratio distribution charts can be found below:
* The bar in red indicates where Allied Digital Services's Current Ratio falls into.
Allied Digital Services Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Allied Digital Services's Current Ratio for the fiscal year that ended in Mar. 2024 is calculated as
* 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.
Allied Digital Services (BOM:532875) 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.
Allied Digital Services Current Ratio Related Terms
Thank you for viewing the detailed overview of Allied Digital Services's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Allied Digital Services (BOM:532875) Business Description
Allied Digital Services Ltd is an Indian-based information technology service and solutions offering company. The company provides a wide range of information technology and consultancy services such as infrastructure services, end-user IT support, IT asset lifecycle, enterprise applications, and integrated solutions. The business activity of the firm is operated through the Enterprise Computing based Solutions and Infrastructure Management based Solutions segments. Geographically the business presence of the firm is seen across the region of India, the United States, the UK, Singapore, Australia, Ireland, Brazil, Japan, and China.
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