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. Vectron Systems AG's current ratio for the quarter that ended in Jun. 2024 was 2.03.
Vectron Systems AG has a current ratio of 2.03. It generally indicates good short-term financial strength.
The historical rank and industry rank for Vectron Systems AG's Current Ratio or its related term are showing as below:
HAM:V3S's Current Ratio is not ranked *
in the Software industry.
Industry Median: 1.82 * Ranked among companies with meaningful Current Ratio only.
Vectron Systems AG (HAM:V3S) 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.
Vectron Systems AG Current Ratio Related Terms
Vectron Systems AG Current Ratio Historical Data
* Premium members only.
The historical data trend for Vectron Systems 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.
HAM:V3S vs CRM, UBER, NOW: Current Ratio Comparison
For the Software - Application subindustry, Vectron Systems 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.
Vectron Systems AG Current Ratio vs Software Industry
For the Software industry and Technology sector, Vectron Systems AG's Current Ratio distribution charts can be found below:
* The bar in red indicates where Vectron Systems 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.
Vectron Systems AG (HAM:V3S) has a Current Ratio of 2.03 as of Jun. 2024.
Is Vectron Systems AG's Current Ratio too high?
Vectron Systems AG's current Current Ratio is 2.03. The Software industry median Current Ratio is 1.82. Vectron Systems AG's value of 2.03 is 11.5% above this industry median. Overall, Vectron Systems AG has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Vectron Systems AG's Current Ratio compare to CRM and UBER?
Vectron Systems AG's Current Ratio of 2.03 can be compared against companies in the Software industry. The industry median Current Ratio is 1.82. Vectron Systems AG's value of 2.03 is 11.5% above this benchmark. 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 2,865 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. Vectron Systems AG's current Current Ratio of 2.03 is 11.5% 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. Vectron Systems AG's current Current Ratio is 2.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vectron Systems AG stock overvalued right now?
Vectron Systems AG (HAM:V3S) has a current Current Ratio of 2.03. The current Current Ratio is 2.03 and 11.5% above the Software industry median of 1.82. Vectron Systems AG's overall GF Score™ is 10/100. 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 Vectron Systems AG (HAM:V3S), the current Current Ratio is 2.03 as of Jun. 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.
Vectron Systems AG engages in the production and sale of point of sale (POS) systems and communication software for the networking of branch shops in Germany. It offers stationary and mobile POS systems; POS software; Commander communications software for the interconnection of POS systems; peripherals, such as customer displays and transponders; ECR app, a mobile app for hospitality professionals; trade solutions for hospitality, gastronomy, bakeries, hotels, and cafes; and bonVito, an online marketing instrument with various functions in the areas of customer retention.
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