What is Paramount Speciality Forgings Current Ratio?
Paramount Speciality ForgingsNSE:PSFL -5.43%13 Current Ratio is 1.57 as of Mar. 2025, which is 31% above its 10-year median of 1.20. GuruFocus rates NSE:PSFL with a GF Score™ of 13/100. The stock has 5 warning signs investors should review. Among 3,073 Industrial Products companies, Paramount Speciality Forgings ranks worse than 66.12% on this metric.
Paramount Speciality Forgings has a current ratio of 1.57. It generally indicates good short-term financial strength.
The historical rank and industry rank for Paramount Speciality Forgings's Current Ratio or its related term are showing as below:
NSE:PSFL'
s Current Ratio Range Over the Past 10 Years
Min: 1.07 Med: 1.2 Max: 1.57
Current: 1.57
During the past 5 years, Paramount Speciality Forgings's highest Current Ratio was 1.57. The lowest was 1.07. And the median was 1.20.
NSE:PSFL's Current Ratio is ranked worse than 66.12% of 3073
companies
in the Industrial Products industry
Industry Median: 1.96
vs NSE:PSFL: 1.57
Paramount Speciality Forgings (NSE:PSFL) 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.
Paramount Speciality Forgings Current Ratio Related Terms
Paramount Speciality Forgings 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.
Paramount Speciality Forgings Current Ratio Chart
Paramount Speciality Forgings Annual Data
Trend
Mar21
Mar22
Mar23
Mar24
Mar25
Current Ratio
1.10
1.22
1.07
1.20
1.57
Paramount Speciality Forgings Semi-Annual Data
Mar21
Mar22
Mar23
Mar24
Mar25
Current Ratio
1.10
1.22
1.07
1.20
1.57
NSE:PSFL vs CRS, ATI, MLI: Current Ratio Comparison
For the Metal Fabrication subindustry, Paramount Speciality Forgings'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.
Paramount Speciality Forgings Current Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Paramount Speciality Forgings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Paramount Speciality Forgings'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.
Paramount Speciality Forgings (NSE:PSFL) has a Current Ratio of 1.57 as of Mar. 2025. This is 31% above median its historical median of 1.20. Over the past decade, Paramount Speciality Forgings' Current Ratio has ranged from 1.07 to 1.57. According to the industry distribution chart, Paramount Speciality Forgings ranks #2032 out of 3073 companies in the Industrial Products industry, placing it in the top 66.1%.
Is Paramount Speciality Forgings' Current Ratio too high?
Paramount Speciality Forgings' current Current Ratio of 1.57 is 31% above median its 10-year median of 1.20. Over the past 10 years, this metric has ranged from a low of 1.07 to a high of 1.57. The Industrial Products industry median Current Ratio is 1.96. Paramount Speciality Forgings' value of 1.57 is 19.9% below this industry median. Based on the distribution chart, Paramount Speciality Forgings ranks #2032 out of 3073 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Paramount Speciality Forgings has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Paramount Speciality Forgings' Current Ratio compare to CRS and ATI?
According to the Industrial Products industry distribution chart, Paramount Speciality Forgings ranks #2032 out of 3073 companies for Current Ratio. This places Paramount Speciality Forgings in the lower half of its industry. The industry median Current Ratio is 1.96. Paramount Speciality Forgings' value of 1.57 is 19.9% below this benchmark. Historically, Paramount Speciality Forgings' own Current Ratio has ranged from 1.07 to 1.57 over the past decade. While the company's 10-year median is 1.20 vs. the industry median of 1.96, Paramount Speciality Forgings 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 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. Paramount Speciality Forgings's current Current Ratio of 1.57 is 19.9% 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 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. Paramount Speciality Forgings's current Current Ratio is 1.57, which is 31% above median its own 10-year median of 1.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paramount Speciality Forgings stock overvalued right now?
Paramount Speciality Forgings (NSE:PSFL) has a current Current Ratio of 1.57. The current Current Ratio is 1.57, which is 31% above median its 10-year median of 1.20 and 19.9% below the Industrial Products industry median of 1.96. Paramount Speciality Forgings' overall GF Score™ is 13/100 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 Paramount Speciality Forgings (NSE:PSFL), the current Current Ratio is 1.57 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.
Paramount Speciality Forgings Business Description
Paramount Speciality Forgings Ltd is engaged in manufacturing steel forgings in India. It manufactures and provides forged components ranging in weight from one kilogram to four metric tons in rough or finish-machined condition. Its products are used in industries such as Petrochemicals, Chemicals, Fertilizers, Oil and Gas, Nuclear Power, and other heavy engineering sectors. The company only operates in the sale of carbon steel and stainless steel flanges and fittings, and other engineering goods made from steel and stainless steel, or any other goods and merchandise.
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