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Velocity CompositesLSE:VEL 34 Current Ratio is 1.31 as of Apr. 2026, which is 48% below its 10-year median of 2.50. GuruFocus rates LSE:VEL with a GF Score™ of 34/100 and a GF Value™ of £0.23 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 359 Aerospace & Defense companies, Velocity Composites ranks worse than 72.7% 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. Velocity Composites's current ratio for the quarter that ended in Apr. 2026 was 1.31.
Velocity Composites has a current ratio of 1.31. It generally indicates good short-term financial strength.
The historical rank and industry rank for Velocity Composites's Current Ratio or its related term are showing as below:
LSE:VEL'
s Current Ratio Range Over the Past 10 Years
Min: 1.01 Med: 2.5 Max: 3.64
Current: 1.31
During the past 12 years, Velocity Composites's highest Current Ratio was 3.64. The lowest was 1.01. And the median was 2.50.
LSE:VEL's Current Ratio is ranked worse than 72.7% of 359
companies
in the Aerospace & Defense industry
Industry Median: 1.93
vs LSE:VEL: 1.31
Velocity Composites (LSE:VEL) 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.
Velocity Composites Current Ratio Related Terms
Velocity Composites Current Ratio Historical Data
* Premium members only.
The historical data trend for Velocity Composites's Current Ratio can be seen below:
* 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:VEL vs SPCX, GE, RTX: Current Ratio Comparison
For the Aerospace & Defense subindustry, Velocity Composites'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.
Velocity Composites Current Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Velocity Composites's Current Ratio distribution charts can be found below:
* The bar in red indicates where Velocity Composites'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.
Velocity Composites (LSE:VEL) has a Current Ratio of 1.31 as of Apr. 2026. This is 48% below median its historical median of 2.50. Over the past decade, Velocity Composites' Current Ratio has ranged from 1.01 to 3.64. According to the industry distribution chart, Velocity Composites ranks #261 out of 359 companies in the Aerospace & Defense industry, placing it in the top 72.7%.
Is Velocity Composites' Current Ratio too high?
Velocity Composites' current Current Ratio of 1.31 is 48% below median its 10-year median of 2.50. Over the past 10 years, this metric has ranged from a low of 1.01 to a high of 3.64. The Aerospace & Defense industry median Current Ratio is 1.93. Velocity Composites' value of 1.31 is 32.1% below this industry median. Based on the distribution chart, Velocity Composites ranks #261 out of 359 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Velocity Composites has a GF Score™ of 34/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Velocity Composites' Current Ratio compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Velocity Composites ranks #261 out of 359 companies for Current Ratio. This places Velocity Composites in the lower half of its industry. The industry median Current Ratio is 1.93. Velocity Composites' value of 1.31 is 32.1% below this benchmark. Historically, Velocity Composites' own Current Ratio has ranged from 1.01 to 3.64 over the past decade. While the company's 10-year median is 2.50 vs. the industry median of 1.93, Velocity Composites 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 Aerospace & Defense company?
The median Current Ratio among Aerospace & Defense companies is 1.93, based on 359 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. Velocity Composites's current Current Ratio of 1.31 is 32.1% 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 Aerospace & Defense industry, the median Current Ratio is 1.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velocity Composites's current Current Ratio is 1.31, which is 48% below median its own 10-year median of 2.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Velocity Composites stock overvalued right now?
Based on GuruFocus' analysis, Velocity Composites (LSE:VEL) is currently considered Significantly Undervalued. The stock's GF Value™ is £0.23, compared to a current price of £0.14 — trading 39.1% below its estimated fair value. The current Current Ratio is 1.31, which is 48% below median its 10-year median of 2.50 and 32.1% below the Aerospace & Defense industry median of 1.93. Velocity Composites' overall GF Score™ is 34/100 with 3 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 Velocity Composites (LSE:VEL), the current Current Ratio is 1.31 as of Apr. 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 Velocity Composites (LSE:VEL) Overvalued in 2026?
Based on GuruFocus' analysis, Velocity Composites stock appears to be undervalued.
The current stock price of £0.14 is trading 39.1% below its estimated GF Value™ of £0.23.
GuruFocus considers Velocity Composites to be Significantly Undervalued.
Key valuation signals for LSE:VEL:
Current Ratio: 1.31 (48% below median its 10-year median of 2.50)
GF Value™: £0.23 vs. price of £0.14 (39.1% below fair value)
Industry Position: 32.1% below the Aerospace & Defense median (#261 of 359)
No single metric tells the full story. See the LSE:VEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Velocity Composites PLC is a provider of engineered composite and process material kits to the aerospace industry. The company's offerings include Engineered Vacuum Bag Material Kits, Structural Material Kits and other Support Services. The majority of revenue is derived from the sale of goods. Geographically, it generates the maximum revenue from the United Kingdom, and the rest from Europe, the USA and the rest of the World.
34GF Score
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