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Zip CoFRA:YRRA +1.68%71 Current Ratio is 8.02 as of Jun. 2026, which is 117% above its 10-year median of 3.69. GuruFocus rates FRA:YRRA with a GF Score™ of 71/100 and a GF Value™ of €1.64. The stock has 5 warning signs investors should review. Among 422 Credit Services companies, Zip Co ranks worse than 79.38% 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. Zip Co's current ratio for the quarter that ended in Jun. 2026 was 8.02.
Zip Co has a current ratio of 8.02. 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 Zip Co's Current Ratio or its related term are showing as below:
FRA:YRRA'
s Current Ratio Range Over the Past 10 Years
Min: 1.21 Med: 3.69 Max: 51.95
Current: 1.21
During the past 13 years, Zip Co's highest Current Ratio was 51.95. The lowest was 1.21. And the median was 3.69.
FRA:YRRA's Current Ratio is ranked worse than 79.38% of 422
companies
in the Credit Services industry
Industry Median: 2.655
vs FRA:YRRA: 1.21
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.
Zip Co Current Ratio Related Terms
Zip Co Current Ratio Historical Data
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The historical data trend for Zip Co'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.
For the Credit Services subindustry, Zip Co'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.
Zip Co Current Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Zip Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Zip Co'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.
Zip Co (FRA:YRRA) has a Current Ratio of 8.02 as of Jun. 2026. This is 117% above median its historical median of 3.69. Over the past decade, Zip Co's Current Ratio has ranged from 1.21 to 51.95. According to the industry distribution chart, Zip Co ranks #335 out of 422 companies in the Credit Services industry, placing it in the top 79.4%.
Is Zip Co's Current Ratio too high?
Zip Co's current Current Ratio of 8.02 is 117% above median its 10-year median of 3.69. Over the past 10 years, this metric has ranged from a low of 1.21 to a high of 51.95. The Credit Services industry median Current Ratio is 2.66. Zip Co's value of 8.02 is 202.1% above this industry median. Based on the distribution chart, Zip Co ranks #335 out of 422 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Zip Co has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does Zip Co's Current Ratio compare to V and MA?
According to the Credit Services industry distribution chart, Zip Co ranks #335 out of 422 companies for Current Ratio. This places Zip Co in the lower half of its industry. The industry median Current Ratio is 2.66. Zip Co's value of 8.02 is 202.1% above this benchmark. Historically, Zip Co's own Current Ratio has ranged from 1.21 to 51.95 over the past decade. While the company's 10-year median is 3.69 vs. the industry median of 2.66, Zip Co 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 Credit Services company?
The median Current Ratio among Credit Services companies is 2.66, based on 422 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. Zip Co's current Current Ratio of 8.02 is 202.1% 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 Credit Services industry, the median Current Ratio is 2.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zip Co's current Current Ratio is 8.02, which is 117% above median its own 10-year median of 3.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zip Co stock overvalued right now?
Zip Co (FRA:YRRA) has a current Current Ratio of 8.02. The stock's GF Value™ is €1.64, compared to a current price of €1.27 — trading 22.4% below its estimated fair value. The current Current Ratio is 8.02, which is 117% above median its 10-year median of 3.69 and 202.1% above the Credit Services industry median of 2.66. Zip Co's overall GF Score™ is 71/100 with 5 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 Zip Co (FRA:YRRA), the current Current Ratio is 8.02 as of Jun. 2026. 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 Zip Co (FRA:YRRA) Overvalued in 2026?
Based on GuruFocus' analysis, Zip Co stock appears to be undervalued.
The current stock price of €1.27 is trading 22.4% below its estimated GF Value™ of €1.64.
Key valuation signals for FRA:YRRA:
Current Ratio: 8.02 (117% above median its 10-year median of 3.69)
GF Value™: €1.64 vs. price of €1.27 (22.4% below fair value)
Industry Position: 202.1% above the Credit Services median (#335 of 422)
No single metric tells the full story. See the FRA:YRRA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zip is a credit provider operating two segments: Australia and New Zealand, and the US. Founded in Australia in 2013, it has over 6 million active customers and partners with over 85,000 merchants. In Australia, Zip positions itself as a credit card alternative, with several revolving credit products. Customers can carry the balance over time with a monthly fee and set their own repayment schedule. The US and New Zealand offering is a far more vanilla BNPL offering: Pay-in-4 in New Zealand and Pay-in-Z in the US, where customers pay back in fixed instalments. The US segment is built on the 2020 acquisition of QuadPay and has recently become Zip's largest and fastest-growing segment.
71GF Score
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