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. Digerati Technologies's current ratio for the quarter that ended in Jan. 2024 was 0.03.
Digerati Technologies has a current ratio of 0.03. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Digerati Technologies 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 Digerati Technologies's Current Ratio or its related term are showing as below:
DTGI'
s Current Ratio Range Over the Past 10 Years
Min: 0.02 Med: 0.16 Max: 0.95
Current: 0.03
During the past 13 years, Digerati Technologies's highest Current Ratio was 0.95. The lowest was 0.02. And the median was 0.16.
DTGI's Current Ratio is ranked worse than 99.74% of 390
companies
in the Telecommunication Services industry
Industry Median: 1.015
vs DTGI: 0.03
Digerati Technologies Current Ratio Historical Data
The historical data trend for Digerati Technologies'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.
Competitive Comparison of Digerati Technologies's Current Ratio
For the Telecom Services subindustry, Digerati Technologies'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.
Digerati Technologies's Current Ratio Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Digerati Technologies's Current Ratio distribution charts can be found below:
* The bar in red indicates where Digerati Technologies's Current Ratio falls into.
Digerati Technologies Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Digerati Technologies's Current Ratio for the fiscal year that ended in Jul. 2023 is calculated as
* 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.
Digerati Technologies (OTCPK:DTGI) 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.
Digerati Technologies Current Ratio Related Terms
Thank you for viewing the detailed overview of Digerati Technologies's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Digerati Technologies (Digerati Technologies) Business Description
Digerati Technologies Inc is a provider of cloud services specializing in Unified Communications as a Service (UCaaS) solutions. The company's product portfolio includes Internet-based telephony products and services delivered through its cloud application platform and session-based communication network and network services including internet broadband, fiber, mobile broadband and cloud WAN solutions (SD WAN). Its services provide enterprise-class, carrier-grade services to the small-to-medium-sized business at cost-effective monthly rates. Its UCaaS or cloud communication services include fully hosted IP/PBX, mobile applications, Voice over Internet Protocol transport, SIP trunking, and customized VoIP services all delivered Only in the Cloud.
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