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. FalconStor Software's current ratio for the quarter that ended in Sep. 2024 was 1.30.
FalconStor Software has a current ratio of 1.30. It generally indicates good short-term financial strength.
The historical rank and industry rank for FalconStor Software's Current Ratio or its related term are showing as below:
FALC'
s Current Ratio Range Over the Past 10 Years
Min: 0.28 Med: 0.85 Max: 1.45
Current: 1.3
During the past 13 years, FalconStor Software's highest Current Ratio was 1.45. The lowest was 0.28. And the median was 0.85.
FALC's Current Ratio is ranked worse than 66.23% of 2831
companies
in the Software industry
Industry Median: 1.78
vs FALC: 1.30
FalconStor Software Current Ratio Historical Data
The historical data trend for FalconStor Software'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 FalconStor Software's Current Ratio
For the Software - Application subindustry, FalconStor Software'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.
FalconStor Software's Current Ratio Distribution in the Software Industry
For the Software industry and Technology sector, FalconStor Software's Current Ratio distribution charts can be found below:
* The bar in red indicates where FalconStor Software'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.
FalconStor Software (OTCPK:FALC) 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.
FalconStor Software Current Ratio Related Terms
Thank you for viewing the detailed overview of FalconStor Software's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
FalconStor Software Inc operates in the trusted data protection software industry, modernizing disaster recovery and backup operations for the hybrid cloud environment. The company enables enterprise customers and managed service providers to secure, migrate, and protect their data while reducing storage costs and long-term retention needs. Its products are StorSafe, StorGuard, and StorSight which deliver data protection, cloud migration, disaster recovery, ransomware recovery, and needs across multi-OS, multi-storage, and on-premises to cloud/hybrid cloud environments. The company's geographical markets include the Americas, which generate the highest revenue, Asia Pacific, Europe, the Middle East, Africa, and others.
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