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. Bondada Engineering's current ratio for the quarter that ended in Mar. 2024 was 1.42.
Bondada Engineering has a current ratio of 1.42. It generally indicates good short-term financial strength.
The historical rank and industry rank for Bondada Engineering's Current Ratio or its related term are showing as below:
BOM:543971'
s Current Ratio Range Over the Past 10 Years
Min: 1.36 Med: 1.42 Max: 1.48
Current: 1.42
During the past 4 years, Bondada Engineering's highest Current Ratio was 1.48. The lowest was 1.36. And the median was 1.42.
BOM:543971's Current Ratio is ranked worse than 56.43% of 1694
companies
in the Construction industry
Industry Median: 1.55
vs BOM:543971: 1.42
Bondada Engineering Current Ratio Historical Data
The historical data trend for Bondada Engineering'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.
Competitive Comparison of Bondada Engineering's Current Ratio
For the Engineering & Construction subindustry, Bondada Engineering'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.
Bondada Engineering's Current Ratio Distribution in the Construction Industry
For the Construction industry and Industrials sector, Bondada Engineering's Current Ratio distribution charts can be found below:
* The bar in red indicates where Bondada Engineering's Current Ratio falls into.
Bondada Engineering 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.
Bondada Engineering'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.
Bondada Engineering (BOM:543971) 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.
Bondada Engineering Current Ratio Related Terms
Thank you for viewing the detailed overview of Bondada Engineering's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Bondada Engineering (BOM:543971) Business Description
Bondada Engineering Ltd is an ISO 9001:2015 certified integrated infrastructure company engaged in the business of providing engineering, procurement, and construction (EPC) services and operations and maintenance (O&M) services to pan India customers operating in the telecom and solar energy industry. The company provides passive telecom infrastructure services which include turnkey services for cell site construction, erection, operation, and maintenance of telecom towers with civil, electrical, and mechanical works; supply of poles and towers, laying and maintenance of optical fiber cables, supply of power equipment and other telecom infrastructure related services to major telecom companies and telecom tower operators in India. The firm generates the majority of its revenue from EPC.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BOM:543971 has been successfully added to your