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. The Descartes Systems Group's current ratio for the quarter that ended in Apr. 2026 was 2.05.
The Descartes Systems Group has a current ratio of 2.05. It generally indicates good short-term financial strength.
The historical rank and industry rank for The Descartes Systems Group's Current Ratio or its related term are showing as below:
MEX:DSG N'
s Current Ratio Range Over the Past 10 Years
Min: 0.87 Med: 1.69 Max: 2.43
Current: 2.05
During the past 13 years, The Descartes Systems Group's highest Current Ratio was 2.43. The lowest was 0.87. And the median was 1.69.
MEX:DSG N's Current Ratio is ranked better than 56.37% of 2865
companies
in the Software industry
Industry Median: 1.82
vs MEX:DSG N: 2.05
The Descartes Systems Group (MEX:DSG N) 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.
The Descartes Systems Group Current Ratio Related Terms
The Descartes Systems Group 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.
MEX:DSG N vs CRM, SHOP, UBER: Current Ratio Comparison
For the Software - Application subindustry, The Descartes Systems Group'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.
The Descartes Systems Group Current Ratio vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where The Descartes Systems Group'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.
The Descartes Systems Group (MEX:DSG N) has a Current Ratio of 2.05 as of Apr. 2026. This is 21% above median its historical median of 1.69. Over the past decade, The Descartes Systems Group's Current Ratio has ranged from 0.87 to 2.43. According to the industry distribution chart, The Descartes Systems Group ranks #1250 out of 2865 companies in the Software industry, placing it in the top 43.6%.
Is The Descartes Systems Group's Current Ratio too high?
The Descartes Systems Group's current Current Ratio of 2.05 is 21% above median its 10-year median of 1.69. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 2.43. The Software industry median Current Ratio is 1.82. The Descartes Systems Group's value of 2.05 is 12.6% above this industry median. Based on the distribution chart, The Descartes Systems Group ranks #1250 out of 2865 companies in the Software industry, which is above the industry midpoint. Overall, The Descartes Systems Group has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does The Descartes Systems Group's Current Ratio compare to CRM and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #1250 out of 2865 companies for Current Ratio. This puts The Descartes Systems Group in the upper half of its industry. The industry median Current Ratio is 1.82. The Descartes Systems Group's value of 2.05 is 12.6% above this benchmark. Historically, The Descartes Systems Group's own Current Ratio has ranged from 0.87 to 2.43 over the past decade. While the company's 10-year median is 1.69 vs. the industry median of 1.82, The Descartes Systems Group 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 Software company?
The median Current Ratio among Software companies is 1.82, based on 2,865 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. The Descartes Systems Group's current Current Ratio of 2.05 is 12.6% 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 Software industry, the median Current Ratio is 1.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Descartes Systems Group's current Current Ratio is 2.05, which is 21% above median its own 10-year median of 1.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Descartes Systems Group stock overvalued right now?
The Descartes Systems Group (MEX:DSG N) has a current Current Ratio of 2.05. The stock's GF Value™ is MXN2,129.50, compared to a current price of MXN1,264.95 — trading 40.6% below its estimated fair value. The current Current Ratio is 2.05, which is 21% above median its 10-year median of 1.69 and 12.6% above the Software industry median of 1.82. The Descartes Systems Group's overall GF Score™ is 85/100. 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 The Descartes Systems Group (MEX:DSG N), the current Current Ratio is 2.05 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 The Descartes Systems Group (MEX:DSG N) Overvalued in 2026?
Based on GuruFocus' analysis, The Descartes Systems Group stock appears to be undervalued.
The current stock price of MXN1,264.95 is trading 40.6% below its estimated GF Value™ of MXN2,129.50.
Key valuation signals for MEX:DSG N:
Current Ratio: 2.05 (21% above median its 10-year median of 1.69)
GF Value™: MXN2,129.50 vs. price of MXN1,264.95 (40.6% below fair value)
Industry Position: 12.6% above the Software median (#1250 of 2865)
No single metric tells the full story. See the MEX:DSG N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. Its core product is the Global Logistics Network, which is best understood as transaction-driven. Descartes charges clients to send/receive messages, data, and documents on the GLN. Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.
85GF Score
Get the complete analysis for MEX:DSG N
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