Ari Motors Industrie SEFRA:ARI +5.26% Current Ratio is 0.53 as of Dec. 2024, which is 66% above its 10-year median of 0.32. Among 1,337 Vehicles & Parts companies, Ari Motors Industrie SE ranks worse than 97.68% on this metric.
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. Ari Motors Industrie SE's current ratio for the quarter that ended in Dec. 2024 was 0.53.
Ari Motors Industrie SE has a current ratio of 0.53. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Ari Motors Industrie SE 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 Ari Motors Industrie SE's Current Ratio or its related term are showing as below:
FRA:ARI'
s Current Ratio Range Over the Past 10 Years
Min: 0.11 Med: 0.32 Max: 0.53
Current: 0.53
During the past 3 years, Ari Motors Industrie SE's highest Current Ratio was 0.53. The lowest was 0.11. And the median was 0.32.
FRA:ARI's Current Ratio is ranked worse than 97.68% of 1337
companies
in the Vehicles & Parts industry
Industry Median: 1.53
vs FRA:ARI: 0.53
Ari Motors Industrie SE (FRA:ARI) 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.
Ari Motors Industrie SE Current Ratio Related Terms
Ari Motors Industrie SE 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.
Ari Motors Industrie SE Current Ratio Chart
Ari Motors Industrie SE Annual Data
Trend
Dec22
Dec23
Dec24
Current Ratio
0.00
0.11
0.53
Ari Motors Industrie SE Semi-Annual Data
Dec22
Dec23
Dec24
Current Ratio
0.00
0.11
0.53
FRA:ARI vs TSLA, GM, F: Current Ratio Comparison
For the Auto Manufacturers subindustry, Ari Motors Industrie SE'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.
Ari Motors Industrie SE Current Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Ari Motors Industrie SE's Current Ratio distribution charts can be found below:
* The bar in red indicates where Ari Motors Industrie SE'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.
Ari Motors Industrie SE (FRA:ARI) has a Current Ratio of 0.53 as of Dec. 2024. This is 66% above median its historical median of 0.32. Over the past decade, Ari Motors Industrie SE's Current Ratio has ranged from 0.11 to 0.53. According to the industry distribution chart, Ari Motors Industrie SE ranks #1306 out of 1337 companies in the Vehicles & Parts industry, placing it in the top 97.7%.
Is Ari Motors Industrie SE's Current Ratio too high?
Ari Motors Industrie SE's current Current Ratio of 0.53 is 66% above median its 10-year median of 0.32. Over the past 10 years, this metric has ranged from a low of 0.11 to a high of 0.53. The Vehicles & Parts industry median Current Ratio is 1.53. Ari Motors Industrie SE's value of 0.53 is 65.4% below this industry median. Based on the distribution chart, Ari Motors Industrie SE ranks #1306 out of 1337 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers.
How does Ari Motors Industrie SE's Current Ratio compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Ari Motors Industrie SE ranks #1306 out of 1337 companies for Current Ratio. This places Ari Motors Industrie SE in the lower half of its industry. The industry median Current Ratio is 1.53. Ari Motors Industrie SE's value of 0.53 is 65.4% below this benchmark. Historically, Ari Motors Industrie SE's own Current Ratio has ranged from 0.11 to 0.53 over the past decade. While the company's 10-year median is 0.32 vs. the industry median of 1.53, Ari Motors Industrie SE has consistently been below the industry average. 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 1.53, 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. Ari Motors Industrie SE's current Current Ratio of 0.53 is 65.4% below 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 1.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ari Motors Industrie SE's current Current Ratio is 0.53, which is 66% above median its own 10-year median of 0.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ari Motors Industrie SE stock overvalued right now?
Ari Motors Industrie SE (FRA:ARI) has a current Current Ratio of 0.53. The current Current Ratio is 0.53, which is 66% above median its 10-year median of 0.32 and 65.4% below the Vehicles & Parts industry median of 1.53. 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 Ari Motors Industrie SE (FRA:ARI), the current Current Ratio is 0.53 as of Dec. 2024. 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.
Ari Motors Industrie SE is a company providing smallest road-legal electric vans in Germany. They also offer specially designed vehicle bodies similar to a conventional van. The classic range therefore extends from flatbed vehicles to suitcase boxes and tarpaulin structures. Individually configured cool or warm boxes as well as tipper or alcove versions are also possible.
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