Indian PhosphateNSE:IPHL -3.31%18 Current Ratio is 1.66 as of Sep. 2025, which is at its 10-year median of 1.66. GuruFocus rates NSE:IPHL with a GF Score™ of 18/100. The stock has 3 warning signs investors should review. Among 1,609 Chemicals companies, Indian Phosphate ranks worse than 58.67% 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. Indian Phosphate's current ratio for the quarter that ended in Sep. 2025 was 1.66.
Indian Phosphate has a current ratio of 1.66. It generally indicates good short-term financial strength.
The historical rank and industry rank for Indian Phosphate's Current Ratio or its related term are showing as below:
NSE:IPHL'
s Current Ratio Range Over the Past 10 Years
Min: 1.43 Med: 1.66 Max: 2.18
Current: 1.66
During the past 5 years, Indian Phosphate's highest Current Ratio was 2.18. The lowest was 1.43. And the median was 1.66.
NSE:IPHL's Current Ratio is ranked worse than 58.67% of 1609
companies
in the Chemicals industry
Industry Median: 1.89
vs NSE:IPHL: 1.66
Indian Phosphate (NSE:IPHL) 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.
Indian Phosphate Current Ratio Related Terms
Indian Phosphate Current Ratio Historical Data
* Premium members only.
The historical data trend for Indian Phosphate'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:IPHL vs LIN, SHW, ECL: Current Ratio Comparison
For the Specialty Chemicals subindustry, Indian Phosphate'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.
Indian Phosphate Current Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Indian Phosphate's Current Ratio distribution charts can be found below:
* The bar in red indicates where Indian Phosphate'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.
Indian Phosphate (NSE:IPHL) has a Current Ratio of 1.66 as of Sep. 2025. This is near median its historical median of 1.66. Over the past decade, Indian Phosphate's Current Ratio has ranged from 1.43 to 2.18. According to the industry distribution chart, Indian Phosphate ranks #944 out of 1609 companies in the Chemicals industry, placing it in the top 58.7%.
Is Indian Phosphate's Current Ratio too high?
Indian Phosphate's current Current Ratio of 1.66 is near median its 10-year median of 1.66. Over the past 10 years, this metric has ranged from a low of 1.43 to a high of 2.18. The Chemicals industry median Current Ratio is 1.89. Indian Phosphate's value of 1.66 is 12.2% below this industry median. Based on the distribution chart, Indian Phosphate ranks #944 out of 1609 companies in the Chemicals industry, which is below the industry midpoint. Overall, Indian Phosphate has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Indian Phosphate's Current Ratio compare to LIN and SHW?
According to the Chemicals industry distribution chart, Indian Phosphate ranks #944 out of 1609 companies for Current Ratio. This places Indian Phosphate in the lower half of its industry. The industry median Current Ratio is 1.89. Indian Phosphate's value of 1.66 is 12.2% below this benchmark. Historically, Indian Phosphate's own Current Ratio has ranged from 1.43 to 2.18 over the past decade. While the company's 10-year median is 1.66 vs. the industry median of 1.89, Indian Phosphate 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 a Chemicals company?
The median Current Ratio among Chemicals companies is 1.89, based on 1,609 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. Indian Phosphate's current Current Ratio of 1.66 is 12.2% 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 Chemicals industry, the median Current Ratio is 1.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Phosphate's current Current Ratio is 1.66, which is near median its own 10-year median of 1.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Phosphate stock overvalued right now?
Indian Phosphate (NSE:IPHL) has a current Current Ratio of 1.66. The current Current Ratio is 1.66, which is near median its 10-year median of 1.66 and 12.2% below the Chemicals industry median of 1.89. Indian Phosphate's overall GF Score™ is 18/100 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 Indian Phosphate (NSE:IPHL), the current Current Ratio is 1.66 as of Sep. 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.
Indian Phosphate Ltd is involved in the production of Linear Alkylbenzene Sulphonic Acid (LABSA) 90%, an anionic surfactant used in the formulation of various detergent products such as powders, cakes, toilet cleaners, and liquid detergents. The company is also involved in manufacturing Single Super Phosphate (SSP) fertilizer and Granules Single Super Phosphate (GSSP). The business comprises the manufacture, purchase, and sale of Fertilizers and chemicals. The company generates the majority of its revenue from the Chemical Division.
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