Mercia Asset ManagementLSE:MERC -6.09%56 Current Ratio is 2.87 as of Mar. 2026, which is 49% below its 10-year median of 5.60. GuruFocus rates LSE:MERC with a GF Score™ of 56/100 and a GF Value™ of £0.32 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 705 Asset Management companies, Mercia Asset Management ranks better than 51.49% 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. Mercia Asset Management's current ratio for the quarter that ended in Mar. 2026 was 2.87.
Mercia Asset Management has a current ratio of 2.87. It generally indicates good short-term financial strength.
The historical rank and industry rank for Mercia Asset Management's Current Ratio or its related term are showing as below:
LSE:MERC'
s Current Ratio Range Over the Past 10 Years
Min: 2.87 Med: 5.6 Max: 9.64
Current: 2.87
During the past 13 years, Mercia Asset Management's highest Current Ratio was 9.64. The lowest was 2.87. And the median was 5.60.
LSE:MERC's Current Ratio is ranked better than 51.49% of 705
companies
in the Asset Management industry
Industry Median: 3.01
vs LSE:MERC: 2.87
Mercia Asset Management (LSE:MERC) 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.
Mercia Asset Management Current Ratio Related Terms
Mercia Asset 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.
LSE:MERC vs BLK, BX, KKR: Current Ratio Comparison
For the Asset Management subindustry, Mercia Asset 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.
Mercia Asset Management Current Ratio vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Mercia Asset Management's Current Ratio distribution charts can be found below:
* The bar in red indicates where Mercia Asset 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.
Mercia Asset Management (LSE:MERC) has a Current Ratio of 2.87 as of Mar. 2026. This is 49% below median its historical median of 5.60. Over the past decade, Mercia Asset Management's Current Ratio has ranged from 2.87 to 9.64. According to the industry distribution chart, Mercia Asset Management ranks #342 out of 705 companies in the Asset Management industry, placing it in the top 48.5%.
Is Mercia Asset Management's Current Ratio too high?
Mercia Asset Management's current Current Ratio of 2.87 is 49% below median its 10-year median of 5.60. Over the past 10 years, this metric has ranged from a low of 2.87 to a high of 9.64. The Asset Management industry median Current Ratio is 3.01. Mercia Asset Management's value of 2.87 is 4.7% below this industry median. Based on the distribution chart, Mercia Asset Management ranks #342 out of 705 companies in the Asset Management industry, which is above the industry midpoint. Overall, Mercia Asset Management has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mercia Asset Management's Current Ratio compare to BLK and BX?
According to the Asset Management industry distribution chart, Mercia Asset Management ranks #342 out of 705 companies for Current Ratio. This puts Mercia Asset Management in the upper half of its industry. The industry median Current Ratio is 3.01. Mercia Asset Management's value of 2.87 is 4.7% below this benchmark. Historically, Mercia Asset Management's own Current Ratio has ranged from 2.87 to 9.64 over the past decade. While the company's 10-year median is 5.60 vs. the industry median of 3.01, Mercia Asset Management 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 an Asset Management company?
The median Current Ratio among Asset Management companies is 3.01, based on 705 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. Mercia Asset Management's current Current Ratio of 2.87 is 4.7% 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. Mercia Asset Management's current Current Ratio is 2.87, which is 49% below median its own 10-year median of 5.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercia Asset Management stock overvalued right now?
Based on GuruFocus' analysis, Mercia Asset Management (LSE:MERC) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.32, compared to a current price of £0.27 — trading 15.6% below its estimated fair value. The current Current Ratio is 2.87, which is 49% below median its 10-year median of 5.60 and 4.7% below the Asset Management industry median of 3.01. Mercia Asset Management's overall GF Score™ is 56/100 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 Mercia Asset Management (LSE:MERC), the current Current Ratio is 2.87 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 Mercia Asset Management (LSE:MERC) Overvalued in 2026?
Based on GuruFocus' analysis, Mercia Asset Management stock appears to be undervalued.
The current stock price of £0.27 is trading 15.6% below its estimated GF Value™ of £0.32.
GuruFocus considers Mercia Asset Management to be Modestly Undervalued.
Key valuation signals for LSE:MERC:
Current Ratio: 2.87 (49% below median its 10-year median of 5.60)
GF Value™: £0.32 vs. price of £0.27 (15.6% below fair value)
Industry Position: 4.7% below the Asset Management median (#342 of 705)
No single metric tells the full story. See the LSE:MERC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercia Asset Management PLC is a specialist asset manager focusing on supporting regional SMEs. The company provides capital across its four asset classes proprietary balance sheet capital, venture capital, private equity, and debt. The company initially nurtures businesses via its third-party funds under management and then, over time, provides further funding to the companies by deploying direct investment follow-on capital from its balance sheet. It has more than eight offices in the UK region, approx. 20 university partnerships and extensive personal networks, providing it with access to high-quality deal flow.
56GF Score
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