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. One Stop Systems's current ratio for the quarter that ended in Mar. 2024 was 5.16.
One Stop Systems has a current ratio of 5.16. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for One Stop Systems's Current Ratio or its related term are showing as below:
FRA:5MU'
s Current Ratio Range Over the Past 10 Years
Min: 1.01 Med: 3.43 Max: 7.07
Current: 5.16
During the past 9 years, One Stop Systems's highest Current Ratio was 7.07. The lowest was 1.01. And the median was 3.43.
FRA:5MU's Current Ratio is ranked better than 87.7% of 2487
companies
in the Hardware industry
Industry Median: 2.01
vs FRA:5MU: 5.16
One Stop Systems Current Ratio Historical Data
The historical data trend for One Stop Systems'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 One Stop Systems's Current Ratio
For the Computer Hardware subindustry, One Stop Systems'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.
One Stop Systems's Current Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, One Stop Systems's Current Ratio distribution charts can be found below:
* The bar in red indicates where One Stop Systems's Current Ratio falls into.
One Stop Systems 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.
One Stop Systems's Current Ratio for the fiscal year that ended in Dec. 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.
One Stop Systems (FRA:5MU) 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.
One Stop Systems Current Ratio Related Terms
Thank you for viewing the detailed overview of One Stop Systems's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
One Stop Systems Inc designs and manufactures innovative Artificial intelligence (AI) Transportable edge computing modules and systems, including ruggedized servers, compute accelerators, expansion systems, flash storage arrays and Ion Accelerator SAN, NAS and data recording software for AI workflows. These products are used for AI data set capture, training, and large-scale inference in the defense, oil and gas, mining, autonomous vehicles and rugged entertainment applications. The company enables AI on the Fly by bringing AI datacenter performance to the edge, especially on mobile platforms, and by addressing the entire AI workflow, from high-speed data acquisition to deep learning, training and inference. Its products are available directly or through global distributors.
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