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. African Dawn Capital's current ratio for the quarter that ended in Aug. 2024 was 0.19.
African Dawn Capital has a current ratio of 0.19. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If African Dawn Capital 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 African Dawn Capital's Current Ratio or its related term are showing as below:
JSE:ADW's Current Ratio is not ranked *
in the Credit Services industry.
Industry Median: 4.985 * Ranked among companies with meaningful Current Ratio only.
African Dawn Capital (JSE:ADW) 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.
African Dawn Capital Current Ratio Related Terms
African Dawn Capital Current Ratio Historical Data
* Premium members only.
The historical data trend for African Dawn Capital'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, African Dawn Capital'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.
African Dawn Capital Current Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, African Dawn Capital's Current Ratio distribution charts can be found below:
* The bar in red indicates where African Dawn Capital'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.
African Dawn Capital (JSE:ADW) has a Current Ratio of 0.19 as of Aug. 2024.
Is African Dawn Capital's Current Ratio too high?
African Dawn Capital's current Current Ratio is 0.19. The Credit Services industry median Current Ratio is 4.99. African Dawn Capital's value of 0.19 is 96.2% below this industry median. Overall, African Dawn Capital has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does African Dawn Capital's Current Ratio compare to V and MA?
African Dawn Capital's Current Ratio of 0.19 can be compared against companies in the Credit Services industry. The industry median Current Ratio is 4.99. African Dawn Capital's value of 0.19 is 96.2% below 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 Credit Services company?
The median Current Ratio among Credit Services companies is 4.99, based on 394 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. African Dawn Capital's current Current Ratio of 0.19 is 96.2% 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 Credit Services industry, the median Current Ratio is 4.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. African Dawn Capital's current Current Ratio is 0.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African Dawn Capital stock overvalued right now?
African Dawn Capital (JSE:ADW) has a current Current Ratio of 0.19. The current Current Ratio is 0.19 and 96.2% below the Credit Services industry median of 4.99. African Dawn Capital's overall GF Score™ is 11/100. 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 African Dawn Capital (JSE:ADW), the current Current Ratio is 0.19 as of Aug. 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.
African Dawn Capital Ltd operates as a microfinance company. The company's operating segment includes Investment advisory and investment management, Microfinance, and Head Office segment. It generates maximum revenue from the Microfinance segment. Geographically, the company operates only in South Africa.
11GF Score
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