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Sofcom SystemsBOM:538923 -3.34%37 Current Ratio is 3.02 as of Mar. 2026, which is 421% above its 10-year median of 0.58. GuruFocus rates BOM:538923 with a GF Score™ of 37/100 and a GF Value™ of ₹8.66 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,876 Software companies, Sofcom Systems ranks better than 72.98% 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. Sofcom Systems's current ratio for the quarter that ended in Mar. 2026 was 3.02.
Sofcom Systems has a current ratio of 3.02. 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 Sofcom Systems's Current Ratio or its related term are showing as below:
BOM:538923'
s Current Ratio Range Over the Past 10 Years
Min: 0.26 Med: 0.58 Max: 113.95
Current: 3.02
During the past 13 years, Sofcom Systems's highest Current Ratio was 113.95. The lowest was 0.26. And the median was 0.58.
BOM:538923's Current Ratio is ranked better than 72.98% of 2876
companies
in the Software industry
Industry Median: 1.8
vs BOM:538923: 3.02
Sofcom Systems (BOM:538923) 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.
Sofcom Systems Current Ratio Related Terms
Sofcom Systems Current Ratio Historical Data
* Premium members only.
The historical data trend for Sofcom 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.
BOM:538923 vs IBM, ACN, FISV: Current Ratio Comparison
For the Information Technology Services subindustry, Sofcom 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.
Sofcom Systems Current Ratio vs Software Industry
For the Software industry and Technology sector, Sofcom Systems's Current Ratio distribution charts can be found below:
* The bar in red indicates where Sofcom 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.
Sofcom Systems (BOM:538923) has a Current Ratio of 3.02 as of Mar. 2026. This is 421% above median its historical median of 0.58. Over the past decade, Sofcom Systems' Current Ratio has ranged from 0.26 to 113.95. According to the industry distribution chart, Sofcom Systems ranks #777 out of 2876 companies in the Software industry, placing it in the top 27%.
Is Sofcom Systems' Current Ratio too high?
Sofcom Systems' current Current Ratio of 3.02 is 421% above median its 10-year median of 0.58. Over the past 10 years, this metric has ranged from a low of 0.26 to a high of 113.95. The Software industry median Current Ratio is 1.80. Sofcom Systems' value of 3.02 is 67.8% above this industry median. Based on the distribution chart, Sofcom Systems ranks #777 out of 2876 companies in the Software industry, which is above the industry midpoint. Overall, Sofcom Systems has a GF Score™ of 37/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sofcom Systems' Current Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Sofcom Systems ranks #777 out of 2876 companies for Current Ratio. This puts Sofcom Systems in the upper half of its industry. The industry median Current Ratio is 1.80. Sofcom Systems' value of 3.02 is 67.8% above this benchmark. Historically, Sofcom Systems' own Current Ratio has ranged from 0.26 to 113.95 over the past decade. While the company's 10-year median is 0.58 vs. the industry median of 1.80, Sofcom Systems 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 Software company?
The median Current Ratio among Software companies is 1.80, based on 2,876 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. Sofcom Systems's current Current Ratio of 3.02 is 67.8% 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 Software industry, the median Current Ratio is 1.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sofcom Systems's current Current Ratio is 3.02, which is 421% above median its own 10-year median of 0.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sofcom Systems stock overvalued right now?
Based on GuruFocus' analysis, Sofcom Systems (BOM:538923) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹8.66, compared to a current price of ₹19.39 — trading 123.9% above its estimated fair value. The current Current Ratio is 3.02, which is 421% above median its 10-year median of 0.58 and 67.8% above the Software industry median of 1.80. Sofcom Systems' overall GF Score™ is 37/100 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 Sofcom Systems (BOM:538923), the current Current Ratio is 3.02 as of Mar. 2026. 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 Sofcom Systems (BOM:538923) Overvalued in 2026?
Based on GuruFocus' analysis, Sofcom Systems stock appears to be overvalued.
The current stock price of ₹19.39 is trading 123.9% above its estimated GF Value™ of ₹8.66.
GuruFocus considers Sofcom Systems to be Significantly Overvalued.
Key valuation signals for BOM:538923:
Current Ratio: 3.02 (421% above median its 10-year median of 0.58)
GF Value™: ₹8.66 vs. price of ₹19.39 (123.9% above fair value)
Industry Position: 67.8% above the Software median (#777 of 2876)
No single metric tells the full story. See the BOM:538923 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sofcom Systems Ltd provides consultancy for software development in the form of services, turnkey projects, and products for the domestic and export market. The software development is targeted towards the distribution, banking, telecommunication, and manufacturing sectors. It also offers software maintenance, reengineering, and downsizing of software applications in these market segments. The company is providing information technology solutions to both commercial and government clients. The Company is engaged in the trading of Software & other items and providing software consultancy in India. The Company derives revenues from sale of software and consultancy.
37GF Score
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