Labat AfricaJSE:LAB +66.67% Current Ratio is 1.68 as of Nov. 2025, which is 62% above its 10-year median of 1.04. The stock has 5 warning signs investors should review. Among 998 Drug Manufacturers companies, Labat Africa ranks worse than 60.22% 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. Labat Africa's current ratio for the quarter that ended in Nov. 2025 was 1.68.
Labat Africa has a current ratio of 1.68. It generally indicates good short-term financial strength.
The historical rank and industry rank for Labat Africa's Current Ratio or its related term are showing as below:
JSE:LAB'
s Current Ratio Range Over the Past 10 Years
Min: 0.6 Med: 1.04 Max: 1.7
Current: 1.68
During the past 13 years, Labat Africa's highest Current Ratio was 1.70. The lowest was 0.60. And the median was 1.04.
JSE:LAB's Current Ratio is ranked worse than 60.22% of 998
companies
in the Drug Manufacturers industry
Industry Median: 1.995
vs JSE:LAB: 1.68
Labat Africa (JSE:LAB) 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.
Labat Africa Current Ratio Related Terms
Labat Africa Current Ratio Historical Data
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The historical data trend for Labat Africa'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.
JSE:LAB vs ZTS, UTHR, VTRS: Current Ratio Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Labat Africa'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.
Labat Africa Current Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Labat Africa's Current Ratio distribution charts can be found below:
* The bar in red indicates where Labat Africa'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.
Labat Africa (JSE:LAB) has a Current Ratio of 1.68 as of Nov. 2025. This is 62% above median its historical median of 1.04. Over the past decade, Labat Africa's Current Ratio has ranged from 0.60 to 1.70. According to the industry distribution chart, Labat Africa ranks #601 out of 998 companies in the Drug Manufacturers industry, placing it in the top 60.2%.
Is Labat Africa's Current Ratio too high?
Labat Africa's current Current Ratio of 1.68 is 62% above median its 10-year median of 1.04. Over the past 10 years, this metric has ranged from a low of 0.60 to a high of 1.70. The Drug Manufacturers industry median Current Ratio is 2.00. Labat Africa's value of 1.68 is 15.8% below this industry median. Based on the distribution chart, Labat Africa ranks #601 out of 998 companies in the Drug Manufacturers industry, which is below the industry midpoint.
How does Labat Africa's Current Ratio compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Labat Africa ranks #601 out of 998 companies for Current Ratio. This places Labat Africa in the lower half of its industry. The industry median Current Ratio is 2.00. Labat Africa's value of 1.68 is 15.8% below this benchmark. Historically, Labat Africa's own Current Ratio has ranged from 0.60 to 1.70 over the past decade. While the company's 10-year median is 1.04 vs. the industry median of 2.00, Labat Africa 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 Drug Manufacturers company?
The median Current Ratio among Drug Manufacturers companies is 2.00, based on 998 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. Labat Africa's current Current Ratio of 1.68 is 15.8% 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 Drug Manufacturers industry, the median Current Ratio is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labat Africa's current Current Ratio is 1.68, which is 62% above median its own 10-year median of 1.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labat Africa stock overvalued right now?
Based on GuruFocus' analysis, Labat Africa (JSE:LAB) is currently considered Possible Value Trap. The stock's GF Value™ is R0.22, compared to a current price of R0.05 — trading 77.3% below its estimated fair value. The current Current Ratio is 1.68, which is 62% above median its 10-year median of 1.04 and 15.8% below the Drug Manufacturers industry median of 2.00. 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 Labat Africa (JSE:LAB), the current Current Ratio is 1.68 as of Nov. 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.
Labat Africa Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Technology, Head office, and Healthcare. The Technology segment manufactures and distributes integrated circuits South African Micro - Electronic Systems. Head office operations provide management services, logistics and seeks further investment opportunities for the Group. The Healthcare segment generates maximum revenue for the company and focusses on medical cannabis industry in South Africa. Geographically, the company carries out its business operations in South Africa.
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