Gul Ahmed Textile MillsKAR:GATM +2.12%75 Current Ratio is 1.06 as of Mar. 2026, which is 5% below its 10-year median of 1.11. GuruFocus rates KAR:GATM with a GF Score™ of 75/100 and a GF Value™ of ₨23.59 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,066 Manufacturing - Apparel & Accessories companies, Gul Ahmed Textile Mills ranks worse than 81.24% 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. Gul Ahmed Textile Mills's current ratio for the quarter that ended in Mar. 2026 was 1.06.
Gul Ahmed Textile Mills has a current ratio of 1.06. It generally indicates good short-term financial strength.
The historical rank and industry rank for Gul Ahmed Textile Mills's Current Ratio or its related term are showing as below:
KAR:GATM'
s Current Ratio Range Over the Past 10 Years
Min: 1.01 Med: 1.11 Max: 1.17
Current: 1.06
During the past 13 years, Gul Ahmed Textile Mills's highest Current Ratio was 1.17. The lowest was 1.01. And the median was 1.11.
Gul Ahmed Textile Mills (KAR:GATM) 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.
Gul Ahmed Textile Mills Current Ratio Related Terms
Gul Ahmed Textile Mills 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.
Gul Ahmed Textile Mills Current Ratio Competitor Comparison
For the Textile Manufacturing subindustry, Gul Ahmed Textile Mills'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.
Gul Ahmed Textile Mills Current Ratio vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Gul Ahmed Textile Mills's Current Ratio distribution charts can be found below:
* The bar in red indicates where Gul Ahmed Textile Mills'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.
Gul Ahmed Textile Mills (KAR:GATM) has a Current Ratio of 1.06 as of Mar. 2026. This is near median its historical median of 1.11. Over the past decade, Gul Ahmed Textile Mills' Current Ratio has ranged from 1.01 to 1.17. According to the industry distribution chart, Gul Ahmed Textile Mills ranks #866 out of 1066 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 81.2%.
Is Gul Ahmed Textile Mills' Current Ratio too high?
Gul Ahmed Textile Mills' current Current Ratio of 1.06 is near median its 10-year median of 1.11. Over the past 10 years, this metric has ranged from a low of 1.01 to a high of 1.17. The Manufacturing - Apparel & Accessories industry median Current Ratio is 1.80. Gul Ahmed Textile Mills' value of 1.06 is 41.1% below this industry median. Based on the distribution chart, Gul Ahmed Textile Mills ranks #866 out of 1066 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Gul Ahmed Textile Mills has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gul Ahmed Textile Mills' Current Ratio compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Gul Ahmed Textile Mills ranks #866 out of 1066 companies for Current Ratio. This places Gul Ahmed Textile Mills in the lower half of its industry. The industry median Current Ratio is 1.80. Gul Ahmed Textile Mills' value of 1.06 is 41.1% below this benchmark. Historically, Gul Ahmed Textile Mills' own Current Ratio has ranged from 1.01 to 1.17 over the past decade. While the company's 10-year median is 1.11 vs. the industry median of 1.80, Gul Ahmed Textile Mills 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 Manufacturing - Apparel & Accessories company?
The median Current Ratio among Manufacturing - Apparel & Accessories companies is 1.80, based on 1,066 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. Gul Ahmed Textile Mills's current Current Ratio of 1.06 is 41.1% 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 Manufacturing - Apparel & Accessories industry, the median Current Ratio is 1.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gul Ahmed Textile Mills's current Current Ratio is 1.06, which is near median its own 10-year median of 1.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gul Ahmed Textile Mills stock overvalued right now?
Based on GuruFocus' analysis, Gul Ahmed Textile Mills (KAR:GATM) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨23.59, compared to a current price of ₨30.90 — trading 31% above its estimated fair value. The current Current Ratio is 1.06, which is near median its 10-year median of 1.11 and 41.1% below the Manufacturing - Apparel & Accessories industry median of 1.80. Gul Ahmed Textile Mills' overall GF Score™ is 75/100 with 6 warning signs 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 Gul Ahmed Textile Mills (KAR:GATM), the current Current Ratio is 1.06 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 Gul Ahmed Textile Mills (KAR:GATM) Overvalued in 2026?
Based on GuruFocus' analysis, Gul Ahmed Textile Mills stock appears to be overvalued.
The current stock price of ₨30.90 is trading 31% above its estimated GF Value™ of ₨23.59.
GuruFocus considers Gul Ahmed Textile Mills to be Significantly Overvalued.
Key valuation signals for KAR:GATM:
Current Ratio: 1.06 (near median its 10-year median of 1.11)
GF Value™: ₨23.59 vs. price of ₨30.90 (31% above fair value)
Industry Position: 41.1% below the Manufacturing - Apparel & Accessories median (#866 of 1066)
No single metric tells the full story. See the KAR:GATM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gul Ahmed Textile Mills Ltd is engaged in the manufacturing and sale of textile products. The company operates in three segments including Spinning that produces different qualities of yarn using both natural and artificial fibers; Home Textiles that produces different types and qualities of products falling under the definition of home textile; and Others include Weaving, Fiber Bleaching, Knitting, Apparel, Yarn dyeing and Dyed yarn fabric etc. The majority of the revenue is derived from Home Textiles segment.
75GF Score
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