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Purple FinanceBOM:544191 +0.86%5 Current Ratio is 0.71 as of Mar. 2026, which is 88% below its 10-year median of 6.15. GuruFocus rates BOM:544191 with a GF Score™ of 5/100. The stock has 3 warning signs investors should review. Among 396 Credit Services companies, Purple Finance ranks worse than 95.2% 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. Purple Finance's current ratio for the quarter that ended in Mar. 2026 was 0.71.
Purple Finance has a current ratio of 0.71. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Purple Finance has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Purple Finance's Current Ratio or its related term are showing as below:
BOM:544191'
s Current Ratio Range Over the Past 10 Years
Min: 0.71 Med: 6.15 Max: 12.89
Current: 0.71
During the past 5 years, Purple Finance's highest Current Ratio was 12.89. The lowest was 0.71. And the median was 6.15.
BOM:544191's Current Ratio is ranked worse than 95.2% of 396
companies
in the Credit Services industry
Industry Median: 4.795
vs BOM:544191: 0.71
Purple Finance (BOM:544191) 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.
Purple Finance Current Ratio Related Terms
Purple Finance Current Ratio Historical Data
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The historical data trend for Purple Finance'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:544191 vs V, MA, AXP: Current Ratio Comparison
For the Credit Services subindustry, Purple Finance'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.
Purple Finance Current Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Purple Finance's Current Ratio distribution charts can be found below:
* The bar in red indicates where Purple Finance'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.
Purple Finance (BOM:544191) has a Current Ratio of 0.71 as of Mar. 2026. This is 88% below median its historical median of 6.15. Over the past decade, Purple Finance's Current Ratio has ranged from 0.71 to 12.89. According to the industry distribution chart, Purple Finance ranks #377 out of 396 companies in the Credit Services industry, placing it in the top 95.2%.
Is Purple Finance's Current Ratio too high?
Purple Finance's current Current Ratio of 0.71 is 88% below median its 10-year median of 6.15. Over the past 10 years, this metric has ranged from a low of 0.71 to a high of 12.89. The Credit Services industry median Current Ratio is 4.80. Purple Finance's value of 0.71 is 85.2% below this industry median. Based on the distribution chart, Purple Finance ranks #377 out of 396 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Purple Finance has a GF Score™ of 5/100, reflecting its overall financial health beyond just this single metric.
How does Purple Finance's Current Ratio compare to V and MA?
According to the Credit Services industry distribution chart, Purple Finance ranks #377 out of 396 companies for Current Ratio. This places Purple Finance in the lower half of its industry. The industry median Current Ratio is 4.80. Purple Finance's value of 0.71 is 85.2% below this benchmark. Historically, Purple Finance's own Current Ratio has ranged from 0.71 to 12.89 over the past decade. While the company's 10-year median is 6.15 vs. the industry median of 4.80, Purple Finance has consistently been below 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 Credit Services company?
The median Current Ratio among Credit Services companies is 4.80, based on 396 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. Purple Finance's current Current Ratio of 0.71 is 85.2% below 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 Credit Services industry, the median Current Ratio is 4.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Purple Finance's current Current Ratio is 0.71, which is 88% below median its own 10-year median of 6.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Purple Finance stock overvalued right now?
Purple Finance (BOM:544191) has a current Current Ratio of 0.71. The current Current Ratio is 0.71, which is 88% below median its 10-year median of 6.15 and 85.2% below the Credit Services industry median of 4.80. Purple Finance's overall GF Score™ is 5/100 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 Purple Finance (BOM:544191), the current Current Ratio is 0.71 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.
Purple Finance Ltd is engaged in lending loans to Corporate & Non-Corporate entities. It provide easier and simplified funding options for the micro and small business enterprise at competitive pricing, faster credit decisions and transparent processes. Its product include MSME Secured Loan.
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