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. Danavation Technologies's current ratio for the quarter that ended in Jan. 2024 was 0.13.
Danavation Technologies has a current ratio of 0.13. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Danavation 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 Danavation Technologies's Current Ratio or its related term are showing as below:
DVNCF's Current Ratio is not ranked *
in the Software industry.
Industry Median: 1.78 * Ranked among companies with meaningful Current Ratio only.
Danavation Technologies Current Ratio Historical Data
* 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 Danavation Technologies's Current Ratio
For the Software - Application subindustry, Danavation 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.
Danavation Technologies's Current Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Danavation Technologies's Current Ratio distribution charts can be found below:
* The bar in red indicates where Danavation Technologies'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.
Danavation Technologies (OTCPK:DVNCF) 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.
Danavation Technologies Current Ratio Related Terms
Thank you for viewing the detailed overview of Danavation Technologies's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Danavation Technologies Corp is an internet of things(IoT) technology company, that provides micro e-paper displays to organizations across North America. The company's Digital Smart Labels, powered by IoT automation technology and software Platform-as-a-Service, enables companies across various sectors to automate labelling, price, product, and promotions in real-time, enhancing data accuracy and improving performance by removing high labour costs and low productivity associated with traditional labour-intensive workflows. The primary revenue streams are; Hardware, Installation and configuration and Software agreements.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
DVNCF has been successfully added to your 