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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. Hamid Fabrics's current ratio for the quarter that ended in Sep. 2024 was 1.83.
Hamid Fabrics has a current ratio of 1.83. It generally indicates good short-term financial strength.
The historical rank and industry rank for Hamid Fabrics's Current Ratio or its related term are showing as below:
DHA:HFL's Current Ratio is not ranked *
in the Manufacturing - Apparel & Accessories industry.
Industry Median: 1.8 * Ranked among companies with meaningful Current Ratio only.
Hamid Fabrics (DHA:HFL) 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.
Hamid Fabrics Current Ratio Related Terms
Hamid Fabrics Current Ratio Historical Data
* Premium members only.
The historical data trend for Hamid Fabrics'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.
For the Textile Manufacturing subindustry, Hamid Fabrics'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.
Hamid Fabrics Current Ratio vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Hamid Fabrics's Current Ratio distribution charts can be found below:
* The bar in red indicates where Hamid Fabrics'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.
Hamid Fabrics (DHA:HFL) has a Current Ratio of 1.83 as of Sep. 2024.
Is Hamid Fabrics' Current Ratio too high?
Hamid Fabrics' current Current Ratio is 1.83. The Manufacturing - Apparel & Accessories industry median Current Ratio is 1.80. Hamid Fabrics' value of 1.83 is 1.7% above this industry median. Overall, Hamid Fabrics has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Hamid Fabrics' Current Ratio compare to competitors?
Hamid Fabrics' Current Ratio of 1.83 can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Current Ratio is 1.80. Hamid Fabrics' value of 1.83 is 1.7% above this benchmark. 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 Manufacturing - Apparel & Accessories company?
The median Current Ratio among Manufacturing - Apparel & Accessories companies is 1.80, based on 1,067 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. Hamid Fabrics's current Current Ratio of 1.83 is 1.7% 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 Manufacturing - Apparel & Accessories industry, the median Current Ratio is 1.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hamid Fabrics's current Current Ratio is 1.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hamid Fabrics stock overvalued right now?
Hamid Fabrics (DHA:HFL) has a current Current Ratio of 1.83. The current Current Ratio is 1.83 and 1.7% above the Manufacturing - Apparel & Accessories industry median of 1.80. Hamid Fabrics' overall GF Score™ is 10/100. 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 Hamid Fabrics (DHA:HFL), the current Current Ratio is 1.83 as of Sep. 2024. 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.
Hamid Fabrics PLC is a manufacturer of solid-dye fabric for the readymade garment industry. The company's product range includes cotton fabrics as well as blended fabrics such as cotton/polyester, cotton/viscose, nylon/cotton and cotton/lycra. The weaving unit produces grey fabrics in various designs and constructions such as Twill, Canvas, Oxford, Rib stop, Rib cord, Ottoman, Herringbone, and various dobby designs of different weight ranges. The finishing mix of Hamid Fabrics Limited comprises water repellent, fireproof, wrinkle-free, Teflon coating, aero finish and chintz finish. The company caters to the markets in the United States of American and the European Union.
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