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What is Litigation Capital Management Current Ratio?
Litigation Capital ManagementLSE:LIT -3.44% Current Ratio is 13.37 as of Dec. 2025, which is 107% above its 10-year median of 6.47. The stock has 5 warning signs investors should review. Among 396 Credit Services companies, Litigation Capital Management ranks better than 58.59% on this metric.
Litigation Capital Management has a current ratio of 13.37. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Litigation Capital Management's Current Ratio or its related term are showing as below:
LSE:LIT'
s Current Ratio Range Over the Past 10 Years
Min: 0.95 Med: 6.47 Max: 37.99
Current: 13.37
During the past 10 years, Litigation Capital Management's highest Current Ratio was 37.99. The lowest was 0.95. And the median was 6.47.
LSE:LIT's Current Ratio is ranked better than 58.59% of 396
companies
in the Credit Services industry
Industry Median: 4.93
vs LSE:LIT: 13.37
Litigation Capital Management (LSE:LIT) 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.
Litigation Capital Management Current Ratio Related Terms
Litigation Capital Management 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 Credit Services subindustry, Litigation Capital Management'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.
Litigation Capital Management Current Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Litigation Capital Management's Current Ratio distribution charts can be found below:
* The bar in red indicates where Litigation Capital Management'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.
Litigation Capital Management (LSE:LIT) has a Current Ratio of 13.37 as of Dec. 2025. This is 107% above median its historical median of 6.47. Over the past decade, Litigation Capital Management's Current Ratio has ranged from 0.95 to 37.99. According to the industry distribution chart, Litigation Capital Management ranks #164 out of 396 companies in the Credit Services industry, placing it in the top 41.4%.
Is Litigation Capital Management's Current Ratio too high?
Litigation Capital Management's current Current Ratio of 13.37 is 107% above median its 10-year median of 6.47. Over the past 10 years, this metric has ranged from a low of 0.95 to a high of 37.99. The Credit Services industry median Current Ratio is 4.93. Litigation Capital Management's value of 13.37 is 171.2% above this industry median. Based on the distribution chart, Litigation Capital Management ranks #164 out of 396 companies in the Credit Services industry, which is above the industry midpoint.
How does Litigation Capital Management's Current Ratio compare to V and MA?
According to the Credit Services industry distribution chart, Litigation Capital Management ranks #164 out of 396 companies for Current Ratio. This puts Litigation Capital Management in the upper half of its industry. The industry median Current Ratio is 4.93. Litigation Capital Management's value of 13.37 is 171.2% above this benchmark. Historically, Litigation Capital Management's own Current Ratio has ranged from 0.95 to 37.99 over the past decade. While the company's 10-year median is 6.47 vs. the industry median of 4.93, Litigation Capital Management 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 Credit Services company?
The median Current Ratio among Credit Services companies is 4.93, based on 396 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. Litigation Capital Management's current Current Ratio of 13.37 is 171.2% 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 Credit Services industry, the median Current Ratio is 4.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Litigation Capital Management's current Current Ratio is 13.37, which is 107% above median its own 10-year median of 6.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Litigation Capital Management stock overvalued right now?
Based on GuruFocus' analysis, Litigation Capital Management (LSE:LIT) is currently considered Possible Value Trap. The stock's GF Value™ is £0.23, compared to a current price of £0.02 — trading 92.9% below its estimated fair value. The current Current Ratio is 13.37, which is 107% above median its 10-year median of 6.47 and 171.2% above the Credit Services industry median of 4.93. 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 Litigation Capital Management (LSE:LIT), the current Current Ratio is 13.37 as of Dec. 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.
Litigation Capital Management Business Description
Litigation Capital Management Ltd is an alternative asset manager specialising in dispute financing solutions internationally, which operates two business models. The first is direct investments made from LCM's permanent balance sheet capital, and the second is third-party fund management. Under those two business models, LCM currently pursues three investment strategies: Single-case funding, Portfolio funding, and Acquisitions of claims. LCM generates its income from both its direct investments and performance fees through asset management. The group's operating segments are Fund, which generates maximum income, and LCM.
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