Aeorema CommunicationsLSE:AEO 58 Current Ratio is 1.26 as of Jun. 2025, which is 25% below its 10-year median of 1.67. GuruFocus rates LSE:AEO with a GF Score™ of 58/100 and a GF Value™ of £0.79 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 1,032 Media - Diversified companies, Aeorema Communications ranks worse than 61.34% 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. Aeorema Communications's current ratio for the quarter that ended in Jun. 2025 was 1.26.
Aeorema Communications has a current ratio of 1.26. It generally indicates good short-term financial strength.
The historical rank and industry rank for Aeorema Communications's Current Ratio or its related term are showing as below:
LSE:AEO'
s Current Ratio Range Over the Past 10 Years
Min: 1.26 Med: 1.67 Max: 2.5
Current: 1.26
During the past 13 years, Aeorema Communications's highest Current Ratio was 2.50. The lowest was 1.26. And the median was 1.67.
LSE:AEO's Current Ratio is ranked worse than 61.34% of 1032
companies
in the Media - Diversified industry
Industry Median: 1.57
vs LSE:AEO: 1.26
Aeorema Communications (LSE:AEO) 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.
Aeorema Communications Current Ratio Related Terms
Aeorema Communications 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.
LSE:AEO vs NFLX, DIS, WBD: Current Ratio Comparison
For the Entertainment subindustry, Aeorema Communications'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.
Aeorema Communications Current Ratio vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Aeorema Communications's Current Ratio distribution charts can be found below:
* The bar in red indicates where Aeorema Communications'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.
Aeorema Communications (LSE:AEO) has a Current Ratio of 1.26 as of Jun. 2025. This is 25% below median its historical median of 1.67. Over the past decade, Aeorema Communications' Current Ratio has ranged from 1.26 to 2.50. According to the industry distribution chart, Aeorema Communications ranks #633 out of 1032 companies in the Media - Diversified industry, placing it in the top 61.3%.
Is Aeorema Communications' Current Ratio too high?
Aeorema Communications' current Current Ratio of 1.26 is 25% below median its 10-year median of 1.67. Over the past 10 years, this metric has ranged from a low of 1.26 to a high of 2.50. The Media - Diversified industry median Current Ratio is 1.57. Aeorema Communications' value of 1.26 is 19.7% below this industry median. Based on the distribution chart, Aeorema Communications ranks #633 out of 1032 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Aeorema Communications has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aeorema Communications' Current Ratio compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Aeorema Communications ranks #633 out of 1032 companies for Current Ratio. This places Aeorema Communications in the lower half of its industry. The industry median Current Ratio is 1.57. Aeorema Communications' value of 1.26 is 19.7% below this benchmark. Historically, Aeorema Communications' own Current Ratio has ranged from 1.26 to 2.50 over the past decade. While the company's 10-year median is 1.67 vs. the industry median of 1.57, Aeorema Communications 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 Media - Diversified company?
The median Current Ratio among Media - Diversified companies is 1.57, based on 1,032 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. Aeorema Communications's current Current Ratio of 1.26 is 19.7% 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 Media - Diversified industry, the median Current Ratio is 1.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aeorema Communications's current Current Ratio is 1.26, which is 25% below median its own 10-year median of 1.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aeorema Communications stock overvalued right now?
Based on GuruFocus' analysis, Aeorema Communications (LSE:AEO) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.79, compared to a current price of £0.63 — trading 20.9% below its estimated fair value. The current Current Ratio is 1.26, which is 25% below median its 10-year median of 1.67 and 19.7% below the Media - Diversified industry median of 1.57. Aeorema Communications' overall GF Score™ is 58/100 with 9 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 Aeorema Communications (LSE:AEO), the current Current Ratio is 1.26 as of Jun. 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.
Is Aeorema Communications (LSE:AEO) Overvalued in 2026?
Based on GuruFocus' analysis, Aeorema Communications stock appears to be undervalued.
The current stock price of £0.63 is trading 20.9% below its estimated GF Value™ of £0.79.
GuruFocus considers Aeorema Communications to be Modestly Undervalued.
Key valuation signals for LSE:AEO:
Current Ratio: 1.26 (25% below median its 10-year median of 1.67)
GF Value™: £0.79 vs. price of £0.63 (20.9% below fair value)
Industry Position: 19.7% below the Media - Diversified median (#633 of 1032)
No single metric tells the full story. See the LSE:AEO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aeorema Communications PLC is a live events company. The company specializes in devising and delivering corporate communication solutions. The company's customers are spread across the United Kingdom, the United States, and the rest of the world. The revenue generated by the company is derived from the provision of services like assisting clients with venue sourcing, event management, and incentive travel.
58GF Score
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