Telkom SOCJSE:TKG -0.49%74 Current Ratio is 1.09 as of Mar. 2026, which is 9% above its 10-year median of 1.00. GuruFocus rates JSE:TKG with a GF Score™ of 74/100 and a GF Value™ of R33.57 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 366 Telecommunication Services companies, Telkom SOC ranks worse than 52.73% 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. Telkom SOC's current ratio for the quarter that ended in Mar. 2026 was 1.09.
Telkom SOC has a current ratio of 1.09. It generally indicates good short-term financial strength.
The historical rank and industry rank for Telkom SOC's Current Ratio or its related term are showing as below:
JSE:TKG'
s Current Ratio Range Over the Past 10 Years
Min: 0.87 Med: 1 Max: 1.31
Current: 1.09
During the past 13 years, Telkom SOC's highest Current Ratio was 1.31. The lowest was 0.87. And the median was 1.00.
JSE:TKG's Current Ratio is ranked worse than 52.73% of 366
companies
in the Telecommunication Services industry
Industry Median: 1.125
vs JSE:TKG: 1.09
Telkom SOC (JSE:TKG) 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.
Telkom SOC Current Ratio Related Terms
Telkom SOC Current Ratio Historical Data
* Premium members only.
The historical data trend for Telkom SOC'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 Telecom Services subindustry, Telkom SOC'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.
Telkom SOC Current Ratio vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telkom SOC's Current Ratio distribution charts can be found below:
* The bar in red indicates where Telkom SOC'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.
Telkom SOC (JSE:TKG) has a Current Ratio of 1.09 as of Mar. 2026. This is near median its historical median of 1.00. Over the past decade, Telkom SOC's Current Ratio has ranged from 0.87 to 1.31. According to the industry distribution chart, Telkom SOC ranks #193 out of 366 companies in the Telecommunication Services industry, placing it in the top 52.7%.
Is Telkom SOC's Current Ratio too high?
Telkom SOC's current Current Ratio of 1.09 is near median its 10-year median of 1.00. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 1.31. The Telecommunication Services industry median Current Ratio is 1.13. Telkom SOC's value of 1.09 is 3.1% below this industry median. Based on the distribution chart, Telkom SOC ranks #193 out of 366 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Telkom SOC has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telkom SOC's Current Ratio compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telkom SOC ranks #193 out of 366 companies for Current Ratio. This places Telkom SOC in the lower half of its industry. The industry median Current Ratio is 1.13. Telkom SOC's value of 1.09 is 3.1% below this benchmark. Historically, Telkom SOC's own Current Ratio has ranged from 0.87 to 1.31 over the past decade. While the company's 10-year median is 1.00 vs. the industry median of 1.13, Telkom SOC 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 Telecommunication Services company?
The median Current Ratio among Telecommunication Services companies is 1.13, based on 366 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. Telkom SOC's current Current Ratio of 1.09 is 3.1% 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 Telecommunication Services industry, the median Current Ratio is 1.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telkom SOC's current Current Ratio is 1.09, which is near median its own 10-year median of 1.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telkom SOC stock overvalued right now?
Based on GuruFocus' analysis, Telkom SOC (JSE:TKG) is currently considered Significantly Overvalued. The stock's GF Value™ is R33.57, compared to a current price of R53.00 — trading 57.9% above its estimated fair value. The current Current Ratio is 1.09, which is near median its 10-year median of 1.00 and 3.1% below the Telecommunication Services industry median of 1.13. Telkom SOC's overall GF Score™ is 74/100 with 1 warning sign 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 Telkom SOC (JSE:TKG), the current Current Ratio is 1.09 as of Mar. 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 Telkom SOC (JSE:TKG) Overvalued in 2026?
Based on GuruFocus' analysis, Telkom SOC stock appears to be overvalued.
The current stock price of R53.00 is trading 57.9% above its estimated GF Value™ of R33.57.
GuruFocus considers Telkom SOC to be Significantly Overvalued.
Key valuation signals for JSE:TKG:
Current Ratio: 1.09 (near median its 10-year median of 1.00)
GF Value™: R33.57 vs. price of R53.00 (57.9% above fair value)
Industry Position: 3.1% below the Telecommunication Services median (#193 of 366)
No single metric tells the full story. See the JSE:TKG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telkom SA SOC Ltd provides fixed-line voice and data communications services in South Africa. The company has segments namely: Openserve; Telkom Consumer; BCX; Gyro; and others It derives maximum revenue from Telkom Consumer segment.
74GF Score
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