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. Shantidoot Infra Services's current ratio for the quarter that ended in Mar. 2024 was 3.63.
Shantidoot Infra Services has a current ratio of 3.63. 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 Shantidoot Infra Services's Current Ratio or its related term are showing as below:
BOM:543598'
s Current Ratio Range Over the Past 10 Years
Min: 0.76 Med: 1.78 Max: 3.82
Current: 3.63
During the past 5 years, Shantidoot Infra Services's highest Current Ratio was 3.82. The lowest was 0.76. And the median was 1.78.
BOM:543598's Current Ratio is ranked better than 90.28% of 1687
companies
in the Construction industry
Industry Median: 1.56
vs BOM:543598: 3.63
Shantidoot Infra 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 Shantidoot Infra Services's Current Ratio
For the Engineering & Construction subindustry, Shantidoot Infra 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.
Shantidoot Infra Services's Current Ratio Distribution in the Construction Industry
For the Construction industry and Industrials sector, Shantidoot Infra Services's Current Ratio distribution charts can be found below:
* The bar in red indicates where Shantidoot Infra Services's Current Ratio falls into.
Shantidoot Infra 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.
Shantidoot Infra 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.
Shantidoot Infra Services (BOM:543598) 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.
Shantidoot Infra Services Current Ratio Related Terms
Thank you for viewing the detailed overview of Shantidoot Infra Services's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Shantidoot Infra Services (BOM:543598) Business Description
Shantidoot Infra Services Ltd is a specialized provider of construction services to the education, healthcare and hospitality sectors. Apart from undertaking new projects the company also carry out projects of re-designing, re-modeling and renovating institutions as per the need of clients. It categorize projects mainly into two segments namely Government sector and Private sector. It is also focused primarily on construction and development of residential and commercial projects, in and around Bihar. The company secure private sector contracts, in general, through one-to-one negotiation and Government contracts through bids as per the public notice issued by government departments.
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