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. IFAD Autos's current ratio for the quarter that ended in Mar. 2025 was 2.04.
IFAD Autos has a current ratio of 2.04. It generally indicates good short-term financial strength.
The historical rank and industry rank for IFAD Autos's Current Ratio or its related term are showing as below:
DHA:IFADAUTOS's Current Ratio is not ranked *
in the Vehicles & Parts industry.
Industry Median: 1.54 * Ranked among companies with meaningful Current Ratio only.
IFAD Autos (DHA:IFADAUTOS) 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.
IFAD Autos Current Ratio Related Terms
IFAD Autos Current Ratio Historical Data
* Premium members only.
The historical data trend for IFAD Autos'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.
DHA:IFADAUTOS vs CVNA, PAG, LAD: Current Ratio Comparison
For the Auto & Truck Dealerships subindustry, IFAD Autos'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.
IFAD Autos Current Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, IFAD Autos's Current Ratio distribution charts can be found below:
* The bar in red indicates where IFAD Autos'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.
IFAD Autos (DHA:IFADAUTOS) has a Current Ratio of 2.04 as of Mar. 2025.
Is IFAD Autos' Current Ratio too high?
IFAD Autos' current Current Ratio is 2.04. The Vehicles & Parts industry median Current Ratio is 1.54. IFAD Autos' value of 2.04 is 32.5% above this industry median. Overall, IFAD Autos has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does IFAD Autos' Current Ratio compare to CVNA and PAG?
IFAD Autos' Current Ratio of 2.04 can be compared against companies in the Vehicles & Parts industry. The industry median Current Ratio is 1.54. IFAD Autos' value of 2.04 is 32.5% 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 Vehicles & Parts company?
The median Current Ratio among Vehicles & Parts companies is 1.54, based on 1,337 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. IFAD Autos's current Current Ratio of 2.04 is 32.5% 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 Vehicles & Parts industry, the median Current Ratio is 1.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IFAD Autos's current Current Ratio is 2.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IFAD Autos stock overvalued right now?
IFAD Autos (DHA:IFADAUTOS) has a current Current Ratio of 2.04. The current Current Ratio is 2.04 and 32.5% above the Vehicles & Parts industry median of 1.54. IFAD Autos' overall GF Score™ is 63/100. 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 IFAD Autos (DHA:IFADAUTOS), the current Current Ratio is 2.04 as of Mar. 2025. 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.
IFAD Autos PLC formerly IFAD Autos Ltd is engaged in importing, marketing, and body-building different models of Ashok Leyland's vehicles in Bangladesh through its marketing staff, dealers, and selling agents. The products offered by the company include Bus, Open Truck, Covered Van, Light Commercial Vehicle, and Tractor. Its operating segment includes Imported Vehicles/CBU; Manufacturing & Assembling Vehicles/CKD and Body Building Unit. The company generates maximum revenue from the Manufacturing & Assembling Vehicles/CKD segment.
63GF Score
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