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Covance SoftSolBOM:544361 +0.93%19 Current Ratio is 3.64 as of Mar. 2026, which is 44% below its 10-year median of 6.53. GuruFocus rates BOM:544361 with a GF Score™ of 19/100. The stock has 4 warning signs investors should review. Among 2,876 Software companies, Covance SoftSol ranks better than 79.42% 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. Covance SoftSol's current ratio for the quarter that ended in Mar. 2026 was 3.64.
Covance SoftSol has a current ratio of 3.64. 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 Covance SoftSol's Current Ratio or its related term are showing as below:
BOM:544361'
s Current Ratio Range Over the Past 10 Years
Min: 3.64 Med: 6.53 Max: 9.86
Current: 3.64
During the past 3 years, Covance SoftSol's highest Current Ratio was 9.86. The lowest was 3.64. And the median was 6.53.
BOM:544361's Current Ratio is ranked better than 79.42% of 2876
companies
in the Software industry
Industry Median: 1.81
vs BOM:544361: 3.64
Covance SoftSol (BOM:544361) 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.
Covance SoftSol Current Ratio Related Terms
Covance SoftSol Current Ratio Historical Data
* Premium members only.
The historical data trend for Covance SoftSol'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:544361 vs IBM, ACN, FISV: Current Ratio Comparison
For the Information Technology Services subindustry, Covance SoftSol'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.
Covance SoftSol Current Ratio vs Software Industry
For the Software industry and Technology sector, Covance SoftSol's Current Ratio distribution charts can be found below:
* The bar in red indicates where Covance SoftSol'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.
Covance SoftSol (BOM:544361) has a Current Ratio of 3.64 as of Mar. 2026. This is 44% below median its historical median of 6.53. Over the past decade, Covance SoftSol's Current Ratio has ranged from 3.64 to 9.86. According to the industry distribution chart, Covance SoftSol ranks #592 out of 2876 companies in the Software industry, placing it in the top 20.6%.
Is Covance SoftSol's Current Ratio too high?
Covance SoftSol's current Current Ratio of 3.64 is 44% below median its 10-year median of 6.53. Over the past 10 years, this metric has ranged from a low of 3.64 to a high of 9.86. The Software industry median Current Ratio is 1.81. Covance SoftSol's value of 3.64 is 101.1% above this industry median. Based on the distribution chart, Covance SoftSol ranks #592 out of 2876 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Covance SoftSol has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Covance SoftSol's Current Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Covance SoftSol ranks #592 out of 2876 companies for Current Ratio. This places Covance SoftSol in the top 21% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.81. Covance SoftSol's value of 3.64 is 101.1% above this benchmark. Historically, Covance SoftSol's own Current Ratio has ranged from 3.64 to 9.86 over the past decade. While the company's 10-year median is 6.53 vs. the industry median of 1.81, Covance SoftSol 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 1.81, 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. Covance SoftSol's current Current Ratio of 3.64 is 101.1% 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 1.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Covance SoftSol's current Current Ratio is 3.64, which is 44% below median its own 10-year median of 6.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Covance SoftSol stock overvalued right now?
Covance SoftSol (BOM:544361) has a current Current Ratio of 3.64. The current Current Ratio is 3.64, which is 44% below median its 10-year median of 6.53 and 101.1% above the Software industry median of 1.81. Covance SoftSol's overall GF Score™ is 19/100 with 4 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 Covance SoftSol (BOM:544361), the current Current Ratio is 3.64 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.
Covance SoftSol Ltd is engaged in the business of information and technology services. It offers various services, including business process transformation, data transformation, enterprise application transformation, and tool-assisted modernization, by utilizing technologies such as cloud, artificial intelligence, machine learning, and provides data analytics solutions with an intuitive UX/UI design. The company caters to enterprises from different industries such as healthcare, media, manufacturing, government, insurance, etc. The firm generates a majority of its revenue through the export of services, and the rest from its domestic operations.
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