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. Abhishek Infraventures's current ratio for the quarter that ended in Mar. 2024 was 2.95.
Abhishek Infraventures has a current ratio of 2.95. It generally indicates good short-term financial strength.
The historical rank and industry rank for Abhishek Infraventures's Current Ratio or its related term are showing as below:
BOM:539544'
s Current Ratio Range Over the Past 10 Years
Min: 1.36 Med: 2.76 Max: 2.98
Current: 2.95
During the past 10 years, Abhishek Infraventures's highest Current Ratio was 2.98. The lowest was 1.36. And the median was 2.76.
BOM:539544's Current Ratio is ranked better than 85.01% of 1694
companies
in the Construction industry
Industry Median: 1.55
vs BOM:539544: 2.95
Abhishek Infraventures 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 Abhishek Infraventures's Current Ratio
For the Engineering & Construction subindustry, Abhishek Infraventures'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.
Abhishek Infraventures's Current Ratio Distribution in the Construction Industry
For the Construction industry and Industrials sector, Abhishek Infraventures's Current Ratio distribution charts can be found below:
* The bar in red indicates where Abhishek Infraventures's Current Ratio falls into.
Abhishek Infraventures 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.
Abhishek Infraventures'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.
Abhishek Infraventures (BOM:539544) 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.
Abhishek Infraventures Current Ratio Related Terms
Thank you for viewing the detailed overview of Abhishek Infraventures's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Abhishek Infraventures (BOM:539544) Business Description
Abhishek Infraventures Ltd is an India-based firm. It operates in one segment namely Construction and project-related activity. The company is engaged in the business as planners, builders, contractors, and civil engineers to build, construct, own, operate, maintain, structure Development and Realty Activities manage, control, and administer residential or industrial building complexes, retail stores, shopping center, market yards, all kinds of cinema theatres and other properties, also the company designs and evaluates all steps, and processes for setting up all types of infrastructure projects. It provides services like the construction of transmission lines and undertakes all kinds of power projects, underground cables, railway tracks, and sidings.
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