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. Salasar Techno Engineering's current ratio for the quarter that ended in Mar. 2024 was 1.35.
Salasar Techno Engineering has a current ratio of 1.35. It generally indicates good short-term financial strength.
The historical rank and industry rank for Salasar Techno Engineering's Current Ratio or its related term are showing as below:
NSE:SALASAR'
s Current Ratio Range Over the Past 10 Years
Min: 1.25 Med: 1.48 Max: 1.63
Current: 1.35
During the past 12 years, Salasar Techno Engineering's highest Current Ratio was 1.63. The lowest was 1.25. And the median was 1.48.
NSE:SALASAR's Current Ratio is ranked worse than 63.55% of 631
companies
in the Steel industry
Industry Median: 1.66
vs NSE:SALASAR: 1.35
Salasar Techno Engineering 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.
Competitive Comparison of Salasar Techno Engineering's Current Ratio
For the Steel subindustry, Salasar Techno Engineering'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.
Salasar Techno Engineering's Current Ratio Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Salasar Techno Engineering's Current Ratio distribution charts can be found below:
* The bar in red indicates where Salasar Techno Engineering's Current Ratio falls into.
Salasar Techno Engineering Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
* 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.
Salasar Techno Engineering (NSE:SALASAR) 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.
Salasar Techno Engineering Current Ratio Related Terms
Thank you for viewing the detailed overview of Salasar Techno Engineering's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Salasar Techno Engineering (NSE:SALASAR) Business Description
Salasar Techno Engineering Ltd is engaged in the manufacturing of galvanized M.S. steel structures and related activities. It is engaged in the manufacturing and fabrication of steel structures for Telecom Towers, Transmission Towers, Utilities Poles, High Mast Poles, Stadium Lighting Poles, Flag Poles, and Smart City Poles Substations Structures, Railway Electrification (OHE), and Solar Module Mounting Structures. The Firm has two reportable segments namely, Steel structure, which derives majority of revenue and comprises manufacturing and sale of Galvanized and Non-galvanized Steel Structures including Telecom Towers, Transmission Line Towers, and Solar Panels; and EPC projects, which comprise survey, supply of materials, design, erection, testing and commissioning on a trunkey basis.
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