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. Trustco Group Holdings's current ratio for the quarter that ended in Feb. 2024 was 0.40.
Trustco Group Holdings has a current ratio of 0.40. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Trustco Group Holdings 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 Trustco Group Holdings's Current Ratio or its related term are showing as below:
JSE:TTO's Current Ratio is not ranked *
in the Asset Management industry.
Industry Median: 3.005 * Ranked among companies with meaningful Current Ratio only.
Trustco Group Holdings (JSE:TTO) 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.
Trustco Group Holdings Current Ratio Related Terms
Trustco Group Holdings Current Ratio Historical Data
* 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 Asset Management subindustry, Trustco Group Holdings'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.
Trustco Group Holdings Current Ratio vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Trustco Group Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Trustco Group Holdings'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.
Trustco Group Holdings (JSE:TTO) has a Current Ratio of 0.40 as of Feb. 2024.
Is Trustco Group Holdings' Current Ratio too high?
Trustco Group Holdings' current Current Ratio is 0.40. The Asset Management industry median Current Ratio is 3.01. Trustco Group Holdings' value of 0.40 is 86.7% below this industry median. Overall, Trustco Group Holdings has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Trustco Group Holdings' Current Ratio compare to BLK and BX?
Trustco Group Holdings' Current Ratio of 0.40 can be compared against companies in the Asset Management industry. The industry median Current Ratio is 3.01. Trustco Group Holdings' value of 0.40 is 86.7% 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 an Asset Management company?
The median Current Ratio among Asset Management companies is 3.01, based on 706 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. Trustco Group Holdings's current Current Ratio of 0.40 is 86.7% 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 Asset Management industry, the median Current Ratio is 3.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trustco Group Holdings's current Current Ratio is 0.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trustco Group Holdings stock overvalued right now?
Trustco Group Holdings (JSE:TTO) has a current Current Ratio of 0.40. The current Current Ratio is 0.40 and 86.7% below the Asset Management industry median of 3.01. Trustco Group Holdings' 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 Trustco Group Holdings (JSE:TTO), the current Current Ratio is 0.40 as of Feb. 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.
Trustco Group Holdings Ltd engages in the provision of financial services. The company's operating segment includes Financial Services and Resources. The Financial Services portfolio earns income from insurance premiums, property sales, rental income, investment property activities, banking and finance activities, interest, fees, and commissions from customers, and tuition income. The Resources portfolio conducts mining operations in Namibia and Sierra Leone. The company earns maximum revenue through Micro-Finance.
11GF Score
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