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. Divgi TorqTransfer Systems's current ratio for the quarter that ended in Mar. 2026 was 5.04.
Divgi TorqTransfer Systems has a current ratio of 5.04. 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 Divgi TorqTransfer Systems's Current Ratio or its related term are showing as below:
NSE:DIVGIITTS'
s Current Ratio Range Over the Past 10 Years
Min: 2.31 Med: 5.02 Max: 7
Current: 5.04
During the past 7 years, Divgi TorqTransfer Systems's highest Current Ratio was 7.00. The lowest was 2.31. And the median was 5.02.
NSE:DIVGIITTS's Current Ratio is ranked better than 93.57% of 1337
companies
in the Vehicles & Parts industry
Industry Median: 1.53
vs NSE:DIVGIITTS: 5.04
Divgi TorqTransfer Systems (NSE:DIVGIITTS) 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.
Divgi TorqTransfer Systems Current Ratio Related Terms
Divgi TorqTransfer Systems 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.
NSE:DIVGIITTS vs ORLY, AZO: Current Ratio Comparison
For the Auto Parts subindustry, Divgi TorqTransfer Systems'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.
Divgi TorqTransfer Systems Current Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Divgi TorqTransfer Systems's Current Ratio distribution charts can be found below:
* The bar in red indicates where Divgi TorqTransfer Systems'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.
Divgi TorqTransfer Systems (NSE:DIVGIITTS) has a Current Ratio of 5.04 as of Mar. 2026. This is near median its historical median of 5.02. Over the past decade, Divgi TorqTransfer Systems' Current Ratio has ranged from 2.31 to 7.00. According to the industry distribution chart, Divgi TorqTransfer Systems ranks #86 out of 1337 companies in the Vehicles & Parts industry, placing it in the top 6.4%.
Is Divgi TorqTransfer Systems' Current Ratio too high?
Divgi TorqTransfer Systems' current Current Ratio of 5.04 is near median its 10-year median of 5.02. Over the past 10 years, this metric has ranged from a low of 2.31 to a high of 7.00. The Vehicles & Parts industry median Current Ratio is 1.53. Divgi TorqTransfer Systems' value of 5.04 is 229.4% above this industry median. Based on the distribution chart, Divgi TorqTransfer Systems ranks #86 out of 1337 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Divgi TorqTransfer Systems has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Divgi TorqTransfer Systems' Current Ratio compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Divgi TorqTransfer Systems ranks #86 out of 1337 companies for Current Ratio. This places Divgi TorqTransfer Systems in the top 6% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.53. Divgi TorqTransfer Systems' value of 5.04 is 229.4% above this benchmark. Historically, Divgi TorqTransfer Systems' own Current Ratio has ranged from 2.31 to 7.00 over the past decade. While the company's 10-year median is 5.02 vs. the industry median of 1.53, Divgi TorqTransfer Systems 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 Vehicles & Parts company?
The median Current Ratio among Vehicles & Parts companies is 1.53, based on 1,337 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. Divgi TorqTransfer Systems's current Current Ratio of 5.04 is 229.4% 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 Vehicles & Parts industry, the median Current Ratio is 1.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Divgi TorqTransfer Systems's current Current Ratio is 5.04, which is near median its own 10-year median of 5.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Divgi TorqTransfer Systems stock overvalued right now?
Based on GuruFocus' analysis, Divgi TorqTransfer Systems (NSE:DIVGIITTS) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,066.03, compared to a current price of ₹980.80 — trading 8% below its estimated fair value. The current Current Ratio is 5.04, which is near median its 10-year median of 5.02 and 229.4% above the Vehicles & Parts industry median of 1.53. Divgi TorqTransfer Systems' overall GF Score™ is 78/100 with 5 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 Divgi TorqTransfer Systems (NSE:DIVGIITTS), the current Current Ratio is 5.04 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 Divgi TorqTransfer Systems (NSE:DIVGIITTS) Overvalued in 2026?
Based on GuruFocus' analysis, Divgi TorqTransfer Systems stock appears to be undervalued.
The current stock price of ₹980.80 is trading 8% below its estimated GF Value™ of ₹1,066.03.
GuruFocus considers Divgi TorqTransfer Systems to be Fairly Valued.
Key valuation signals for NSE:DIVGIITTS:
Current Ratio: 5.04 (near median its 10-year median of 5.02)
GF Value™: ₹1,066.03 vs. price of ₹980.80 (8% below fair value)
Industry Position: 229.4% above the Vehicles & Parts median (#86 of 1337)
No single metric tells the full story. See the NSE:DIVGIITTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Divgi TorqTransfer Systems Ltd is engaged in the business as an automotive component entity. It develops and provides system-level transfer cases, torque couplers, and dual clutch automatic transmission solutions. The Company operates only in one business segment, viz. Auto Components and Parts. The secondary segment is based on geographical demarcation, i.e., domestic and exports. The company gained the majority of its revenue from India, followed by the USA, Mexico, and Sweden.
78GF Score
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