Danish PowerNSE:DANISH -6.40%21 Current Ratio is 3.64 as of Mar. 2025, which is 126% above its 10-year median of 1.61. GuruFocus rates NSE:DANISH with a GF Score™ of 21/100. The stock has 6 warning signs investors should review. Among 3,073 Industrial Products companies, Danish Power ranks better than 81.58% 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. Danish Power's current ratio for the quarter that ended in Mar. 2025 was 3.64.
Danish Power has a current ratio of 3.64. 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 Danish Power's Current Ratio or its related term are showing as below:
NSE:DANISH'
s Current Ratio Range Over the Past 10 Years
Min: 1.4 Med: 1.61 Max: 3.64
Current: 3.64
During the past 4 years, Danish Power's highest Current Ratio was 3.64. The lowest was 1.40. And the median was 1.61.
NSE:DANISH's Current Ratio is ranked better than 81.58% of 3073
companies
in the Industrial Products industry
Industry Median: 1.96
vs NSE:DANISH: 3.64
Danish Power (NSE:DANISH) 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.
Danish Power Current Ratio Related Terms
Danish Power Current Ratio Historical Data
* Premium members only.
The historical data trend for Danish Power'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.
Danish Power Current Ratio Chart
Danish Power Annual Data
Trend
Mar22
Mar23
Mar24
Mar25
Current Ratio
1.40
1.47
1.75
3.64
Danish Power Semi-Annual Data
Mar22
Mar23
Mar24
Mar25
Current Ratio
1.40
1.47
1.75
3.64
NSE:DANISH vs VRT, BE: Current Ratio Comparison
For the Electrical Equipment & Parts subindustry, Danish Power'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.
Danish Power Current Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Danish Power's Current Ratio distribution charts can be found below:
* The bar in red indicates where Danish Power'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.
Danish Power (NSE:DANISH) has a Current Ratio of 3.64 as of Mar. 2025. This is 126% above median its historical median of 1.61. Over the past decade, Danish Power's Current Ratio has ranged from 1.40 to 3.64. According to the industry distribution chart, Danish Power ranks #566 out of 3073 companies in the Industrial Products industry, placing it in the top 18.4%.
Is Danish Power's Current Ratio too high?
Danish Power's current Current Ratio of 3.64 is 126% above median its 10-year median of 1.61. Over the past 10 years, this metric has ranged from a low of 1.40 to a high of 3.64. The Industrial Products industry median Current Ratio is 1.96. Danish Power's value of 3.64 is 85.7% above this industry median. Based on the distribution chart, Danish Power ranks #566 out of 3073 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Danish Power has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Danish Power's Current Ratio compare to VRT and BE?
According to the Industrial Products industry distribution chart, Danish Power ranks #566 out of 3073 companies for Current Ratio. This places Danish Power in the top 18% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.96. Danish Power's value of 3.64 is 85.7% above this benchmark. Historically, Danish Power's own Current Ratio has ranged from 1.40 to 3.64 over the past decade. While the company's 10-year median is 1.61 vs. the industry median of 1.96, Danish Power 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 an Industrial Products company?
The median Current Ratio among Industrial Products companies is 1.96, based on 3,073 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. Danish Power's current Current Ratio of 3.64 is 85.7% 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 Industrial Products industry, the median Current Ratio is 1.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Danish Power's current Current Ratio is 3.64, which is 126% above median its own 10-year median of 1.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Danish Power stock overvalued right now?
Danish Power (NSE:DANISH) has a current Current Ratio of 3.64. The current Current Ratio is 3.64, which is 126% above median its 10-year median of 1.61 and 85.7% above the Industrial Products industry median of 1.96. Danish Power's overall GF Score™ is 21/100 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 Danish Power (NSE:DANISH), the current Current Ratio is 3.64 as of Mar. 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.
Danish Power Ltd is a manufacturer of power equipment specializing in transformers, panels, automation, and substations, serving both Indian and international markets. The company operates through two business segments: Transformers and Panels, with the Transformers segment accounting for the majority of its revenue. Its product portfolio includes power transformers up to 100 MVA 245 kV, distribution transformers up to 5 MVA 33 kV, dry-type cast resin transformers, inverter duty and wind turbine generator transformers, special application transformers, control relay panels with substation automation (up to 400 kV), compact and pad-mounted substations, and traction transformers. The company derives the majority of its revenue from the domestic market.
21GF Score
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