Indo Farm EquipmentNSE:INDOFARM +12.11%46 Current Ratio is 2.93 as of Mar. 2026, which is 97% above its 10-year median of 1.49. GuruFocus rates NSE:INDOFARM with a GF Score™ of 46/100. The stock has 4 warning signs investors should review. Among 210 Farm & Heavy Construction Machinery companies, Indo Farm Equipment ranks better than 79.05% 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. Indo Farm Equipment's current ratio for the quarter that ended in Mar. 2026 was 2.93.
Indo Farm Equipment has a current ratio of 2.93. It generally indicates good short-term financial strength.
The historical rank and industry rank for Indo Farm Equipment's Current Ratio or its related term are showing as below:
NSE:INDOFARM'
s Current Ratio Range Over the Past 10 Years
Min: 1.43 Med: 1.49 Max: 2.93
Current: 2.93
During the past 6 years, Indo Farm Equipment's highest Current Ratio was 2.93. The lowest was 1.43. And the median was 1.49.
NSE:INDOFARM's Current Ratio is ranked better than 79.05% of 210
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.815
vs NSE:INDOFARM: 2.93
Indo Farm Equipment (NSE:INDOFARM) 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.
Indo Farm Equipment Current Ratio Related Terms
Indo Farm Equipment Current Ratio Historical Data
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The historical data trend for Indo Farm Equipment'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.
NSE:INDOFARM vs CAT, DE, PCAR: Current Ratio Comparison
For the Farm & Heavy Construction Machinery subindustry, Indo Farm Equipment'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.
Indo Farm Equipment Current Ratio vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Indo Farm Equipment's Current Ratio distribution charts can be found below:
* The bar in red indicates where Indo Farm Equipment'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.
Indo Farm Equipment (NSE:INDOFARM) has a Current Ratio of 2.93 as of Mar. 2026. This is 97% above median its historical median of 1.49. Over the past decade, Indo Farm Equipment's Current Ratio has ranged from 1.43 to 2.93. According to the industry distribution chart, Indo Farm Equipment ranks #44 out of 210 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 21%.
Is Indo Farm Equipment's Current Ratio too high?
Indo Farm Equipment's current Current Ratio of 2.93 is 97% above median its 10-year median of 1.49. Over the past 10 years, this metric has ranged from a low of 1.43 to a high of 2.93. The Farm & Heavy Construction Machinery industry median Current Ratio is 1.82. Indo Farm Equipment's value of 2.93 is 61.4% above this industry median. Based on the distribution chart, Indo Farm Equipment ranks #44 out of 210 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, Indo Farm Equipment has a GF Score™ of 46/100, reflecting its overall financial health beyond just this single metric.
How does Indo Farm Equipment's Current Ratio compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Indo Farm Equipment ranks #44 out of 210 companies for Current Ratio. This places Indo Farm Equipment in the top 21% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.82. Indo Farm Equipment's value of 2.93 is 61.4% above this benchmark. Historically, Indo Farm Equipment's own Current Ratio has ranged from 1.43 to 2.93 over the past decade. While the company's 10-year median is 1.49 vs. the industry median of 1.82, Indo Farm Equipment 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 Farm & Heavy Construction Machinery company?
The median Current Ratio among Farm & Heavy Construction Machinery companies is 1.82, based on 210 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. Indo Farm Equipment's current Current Ratio of 2.93 is 61.4% 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 Farm & Heavy Construction Machinery 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. Indo Farm Equipment's current Current Ratio is 2.93, which is 97% above median its own 10-year median of 1.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indo Farm Equipment stock overvalued right now?
Indo Farm Equipment (NSE:INDOFARM) has a current Current Ratio of 2.93. The current Current Ratio is 2.93, which is 97% above median its 10-year median of 1.49 and 61.4% above the Farm & Heavy Construction Machinery industry median of 1.82. Indo Farm Equipment's overall GF Score™ is 46/100 with 4 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 Indo Farm Equipment (NSE:INDOFARM), the current Current Ratio is 2.93 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.
Indo Farm Equipment Ltd is a fully integrated established manufacturer of Tractors and Pick & Carry Cranes. It also deals in other farm equipment such as Harvester Combines, Rotavators, and other related spares & components. Its facilities are equipped with induction furnaces, pneumatic molding machines, automatic molding line, a sand plant, a fully equipped Metallurgy and Sand Testing Laboratory, a Machining Center, a Gear Shop, a Press Shop, Fabrication Shop, Paint Shop, Assembly unit, Quality Room & Utility room.
46GF Score
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