Tata SteelCHIX:TTSTL -5.24%78 Current Ratio is 0.75 as of Mar. 2026, which is 18% below its 10-year median of 0.92. GuruFocus rates CHIX:TTSTL with a GF Score™ of 78/100 and a GF Value™ of $18.08 (Fairly Valued). The stock has 5 warning signs investors should review. Among 636 Steel companies, Tata Steel ranks worse than 88.05% 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. Tata Steel's current ratio for the quarter that ended in Mar. 2026 was 0.75.
Tata Steel has a current ratio of 0.75. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Tata Steel 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 Tata Steel's Current Ratio or its related term are showing as below:
CHIX:TTSTl'
s Current Ratio Range Over the Past 10 Years
Min: 0.72 Med: 0.92 Max: 1.22
Current: 0.75
During the past 13 years, Tata Steel's highest Current Ratio was 1.22. The lowest was 0.72. And the median was 0.92.
CHIX:TTSTl's Current Ratio is ranked worse than 88.05% of 636
companies
in the Steel industry
Industry Median: 1.63
vs CHIX:TTSTl: 0.75
Tata Steel (CHIX:TTSTl) 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.
Tata Steel Current Ratio Related Terms
Tata Steel Current Ratio Historical Data
* Premium members only.
The historical data trend for Tata Steel'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.
CHIX:TTSTL vs NUE, STLD, RS: Current Ratio Comparison
For the Steel subindustry, Tata Steel'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.
Tata Steel Current Ratio vs Steel Industry
For the Steel industry and Basic Materials sector, Tata Steel's Current Ratio distribution charts can be found below:
* The bar in red indicates where Tata Steel'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.
Tata Steel (CHIX:TTSTL) has a Current Ratio of 0.75 as of Mar. 2026. This is 18% below median its historical median of 0.92. Over the past decade, Tata Steel's Current Ratio has ranged from 0.72 to 1.22. According to the industry distribution chart, Tata Steel ranks #560 out of 636 companies in the Steel industry, placing it in the top 88.1%.
Is Tata Steel's Current Ratio too high?
Tata Steel's current Current Ratio of 0.75 is 18% below median its 10-year median of 0.92. Over the past 10 years, this metric has ranged from a low of 0.72 to a high of 1.22. The Steel industry median Current Ratio is 1.63. Tata Steel's value of 0.75 is 54% below this industry median. Based on the distribution chart, Tata Steel ranks #560 out of 636 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Tata Steel has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tata Steel's Current Ratio compare to NUE and STLD?
According to the Steel industry distribution chart, Tata Steel ranks #560 out of 636 companies for Current Ratio. This places Tata Steel in the lower half of its industry. The industry median Current Ratio is 1.63. Tata Steel's value of 0.75 is 54% below this benchmark. Historically, Tata Steel's own Current Ratio has ranged from 0.72 to 1.22 over the past decade. While the company's 10-year median is 0.92 vs. the industry median of 1.63, Tata Steel 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 Steel company?
The median Current Ratio among Steel companies is 1.63, based on 636 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. Tata Steel's current Current Ratio of 0.75 is 54% 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 Steel industry, the median Current Ratio is 1.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Steel's current Current Ratio is 0.75, which is 18% below median its own 10-year median of 0.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Steel stock overvalued right now?
Based on GuruFocus' analysis, Tata Steel (CHIX:TTSTL) is currently considered Fairly Valued. The stock's GF Value™ is $18.08, compared to a current price of $19.90 — trading 10.1% above its estimated fair value. The current Current Ratio is 0.75, which is 18% below median its 10-year median of 0.92 and 54% below the Steel industry median of 1.63. Tata Steel's overall GF Score™ is 78/100 with 5 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 Tata Steel (CHIX:TTSTL), the current Current Ratio is 0.75 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.
Is Tata Steel (CHIX:TTSTL) Overvalued in 2026?
Based on GuruFocus' analysis, Tata Steel stock appears to be overvalued.
The current stock price of $19.90 is trading 10.1% above its estimated GF Value™ of $18.08.
GuruFocus considers Tata Steel to be Fairly Valued.
Key valuation signals for CHIX:TTSTL:
Current Ratio: 0.75 (18% below median its 10-year median of 0.92)
GF Value™: $18.08 vs. price of $19.90 (10.1% above fair value)
Industry Position: 54% below the Steel median (#560 of 636)
No single metric tells the full story. See the CHIX:TTSTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tata Steel Ltd is an India-based company that is engaged in the production and marketing of various steel products. Its products are basically classified into flat products and construction products. Flat products include hot-rolled steel, cold-rolled steel, metallic-coated steel, direct-coated steel, tubes, packaging steel, electro-plated steel, and narrow strips. Its segments include Tata Steel India, Neelachal Ispat Nigam Limited, Other Indian operations, Tata Steel Europe, Other trade related operations, South-East Asian operations, and Rest of the world. It generates the majority of its revenue from the Tata Steel India segment.
78GF Score
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