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. DRS Data & Research Services's current ratio for the quarter that ended in Dec. 2015 was 2.33.
DRS Data & Research Services has a current ratio of 2.33. It generally indicates good short-term financial strength.
The historical rank and industry rank for DRS Data & Research Services's Current Ratio or its related term are showing as below:
LSE:DRSA'
s Current Ratio Range Over the Past 10 Years
Min: 1.72 Med: 2.44 Max: 5.55
Current: 2.33
During the past 13 years, DRS Data & Research Services's highest Current Ratio was 5.55. The lowest was 1.72. And the median was 2.44.
LSE:DRSA's Current Ratio is not ranked
in the Business Services industry.
Industry Median: 1.81
vs LSE:DRSA: 2.33
DRS Data & Research Services (LSE:DRSA) 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.
DRS Data & Research Services Current Ratio Related Terms
DRS Data & Research Services 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.
DRS Data & Research Services Current Ratio Competitor Comparison
For the Specialty Business Services subindustry, DRS Data & Research Services'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.
DRS Data & Research Services Current Ratio vs Business Services Industry
For the Business Services industry and Industrials sector, DRS Data & Research Services's Current Ratio distribution charts can be found below:
* The bar in red indicates where DRS Data & Research Services'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.
DRS Data & Research Services (LSE:DRSA) has a Current Ratio of 2.33 as of Dec. 2015. This is near median its historical median of 2.44. Over the past decade, DRS Data & Research Services' Current Ratio has ranged from 1.72 to 5.55.
Is DRS Data & Research Services' Current Ratio too high?
DRS Data & Research Services' current Current Ratio of 2.33 is near median its 10-year median of 2.44. Over the past 10 years, this metric has ranged from a low of 1.72 to a high of 5.55. The Business Services industry median Current Ratio is 1.81. DRS Data & Research Services' value of 2.33 is 28.7% above this industry median.
How does DRS Data & Research Services' Current Ratio compare to competitors?
DRS Data & Research Services' Current Ratio of 2.33 can be compared against companies in the Business Services industry. The industry median Current Ratio is 1.81. DRS Data & Research Services' value of 2.33 is 28.7% above this benchmark. Historically, DRS Data & Research Services' own Current Ratio has ranged from 1.72 to 5.55 over the past decade. While the company's 10-year median is 2.44 vs. the industry median of 1.81, DRS Data & Research Services has consistently been above 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 Business Services company?
The median Current Ratio among Business Services companies is 1.81, based on 1,092 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. DRS Data & Research Services's current Current Ratio of 2.33 is 28.7% above 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 Business Services industry, the median Current Ratio is 1.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DRS Data & Research Services's current Current Ratio is 2.33, which is near median its own 10-year median of 2.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DRS Data & Research Services stock overvalued right now?
DRS Data & Research Services (LSE:DRSA) has a current Current Ratio of 2.33. The current Current Ratio is 2.33, which is near median its 10-year median of 2.44 and 28.7% above the Business Services industry median of 1.81. 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 DRS Data & Research Services (LSE:DRSA), the current Current Ratio is 2.33 as of Dec. 2015. 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.
DRS Data & Research Services PLC was incorporated on August 1, 1969. The Company is engaged in the provision of data capture services, the manufacture, sale and support of optical and image scanning equipment, design and printing of documentation used for data capture and associated software and bureau services.
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