GBS Software AGFRA:INW -1.44%49 Current Ratio is 9.12 as of Dec. 2025, which is 77% below its 10-year median of 39.84. GuruFocus rates FRA:INW with a GF Score™ of 49/100 and a GF Value™ of €1.16 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,866 Software companies, GBS Software AG ranks better than 94.98% 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. GBS Software AG's current ratio for the quarter that ended in Dec. 2025 was 9.12.
GBS Software AG has a current ratio of 9.12. 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 GBS Software AG's Current Ratio or its related term are showing as below:
FRA:INW'
s Current Ratio Range Over the Past 10 Years
Min: 9.12 Med: 39.84 Max: 546.33
Current: 9.12
During the past 13 years, GBS Software AG's highest Current Ratio was 546.33. The lowest was 9.12. And the median was 39.84.
FRA:INW's Current Ratio is ranked better than 94.98% of 2866
companies
in the Software industry
Industry Median: 1.815
vs FRA:INW: 9.12
GBS Software AG (FRA:INW) 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.
GBS Software AG Current Ratio Related Terms
GBS Software AG Current Ratio Historical Data
* Premium members only.
The historical data trend for GBS Software AG'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.
FRA:INW vs MSFT, ORCL, PLTR: Current Ratio Comparison
For the Software - Infrastructure subindustry, GBS Software AG'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.
GBS Software AG Current Ratio vs Software Industry
For the Software industry and Technology sector, GBS Software AG's Current Ratio distribution charts can be found below:
* The bar in red indicates where GBS Software AG'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.
GBS Software AG (FRA:INW) has a Current Ratio of 9.12 as of Dec. 2025. This is 77% below median its historical median of 39.84. Over the past decade, GBS Software AG's Current Ratio has ranged from 9.12 to 546.33. According to the industry distribution chart, GBS Software AG ranks #144 out of 2866 companies in the Software industry, placing it in the top 5%.
Is GBS Software AG's Current Ratio too high?
GBS Software AG's current Current Ratio of 9.12 is 77% below median its 10-year median of 39.84. Over the past 10 years, this metric has ranged from a low of 9.12 to a high of 546.33. The Software industry median Current Ratio is 1.82. GBS Software AG's value of 9.12 is 402.5% above this industry median. Based on the distribution chart, GBS Software AG ranks #144 out of 2866 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, GBS Software AG has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GBS Software AG's Current Ratio compare to MSFT and ORCL?
According to the Software industry distribution chart, GBS Software AG ranks #144 out of 2866 companies for Current Ratio. This places GBS Software AG in the top 5% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.82. GBS Software AG's value of 9.12 is 402.5% above this benchmark. Historically, GBS Software AG's own Current Ratio has ranged from 9.12 to 546.33 over the past decade. While the company's 10-year median is 39.84 vs. the industry median of 1.82, GBS Software AG has consistently been above 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 Software company?
The median Current Ratio among Software companies is 1.82, based on 2,866 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. GBS Software AG's current Current Ratio of 9.12 is 402.5% above 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 Software industry, the median Current Ratio is 1.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GBS Software AG's current Current Ratio is 9.12, which is 77% below median its own 10-year median of 39.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GBS Software AG stock overvalued right now?
Based on GuruFocus' analysis, GBS Software AG (FRA:INW) is currently considered Significantly Overvalued. The stock's GF Value™ is €1.16, compared to a current price of €4.12 — trading 255.2% above its estimated fair value. The current Current Ratio is 9.12, which is 77% below median its 10-year median of 39.84 and 402.5% above the Software industry median of 1.82. GBS Software AG's overall GF Score™ is 49/100 with 7 warning signs to review. 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 GBS Software AG (FRA:INW), the current Current Ratio is 9.12 as of Dec. 2025. 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.
Is GBS Software AG (FRA:INW) Overvalued in 2026?
Based on GuruFocus' analysis, GBS Software AG stock appears to be overvalued.
The current stock price of €4.12 is trading 255.2% above its estimated GF Value™ of €1.16.
GuruFocus considers GBS Software AG to be Significantly Overvalued.
Key valuation signals for FRA:INW:
Current Ratio: 9.12 (77% below median its 10-year median of 39.84)
GF Value™: €1.16 vs. price of €4.12 (255.2% above fair value)
Industry Position: 402.5% above the Software median (#144 of 2866)
No single metric tells the full story. See the FRA:INW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GBS Software AG provides solutions and services in the fields of messaging security and workflow for the IBM and Microsoft collaboration platforms. It acts as a providers of email security and workflow management solutions. The company operates in Europe, North America, and Asia. It provides retirement management solutions as well. The group provides the following services: Domino Administration, XPages migration, Mobility, Consulting, and Training and mentoring.
49GF Score
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