Sterling ToolsNSE:STERTOOLS -0.44%87 Current Ratio is 1.97 as of Mar. 2026, which is 4% below its 10-year median of 2.06. GuruFocus rates NSE:STERTOOLS with a GF Score™ of 87/100 and a GF Value™ of ₹331.67 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 3,070 Industrial Products companies, Sterling Tools ranks better than 50.13% 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. Sterling Tools's current ratio for the quarter that ended in Mar. 2026 was 1.97.
Sterling Tools has a current ratio of 1.97. It generally indicates good short-term financial strength.
The historical rank and industry rank for Sterling Tools's Current Ratio or its related term are showing as below:
NSE:STERTOOLS'
s Current Ratio Range Over the Past 10 Years
Min: 1.84 Med: 2.06 Max: 2.78
Current: 1.97
During the past 13 years, Sterling Tools's highest Current Ratio was 2.78. The lowest was 1.84. And the median was 2.06.
NSE:STERTOOLS's Current Ratio is ranked better than 50.13% of 3070
companies
in the Industrial Products industry
Industry Median: 1.97
vs NSE:STERTOOLS: 1.97
Sterling Tools (NSE:STERTOOLS) 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.
Sterling Tools Current Ratio Related Terms
Sterling Tools Current Ratio Historical Data
* Premium members only.
The historical data trend for Sterling Tools'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:STERTOOLS vs SNA, RBC, LECO: Current Ratio Comparison
For the Tools & Accessories subindustry, Sterling Tools'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.
Sterling Tools Current Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Sterling Tools's Current Ratio distribution charts can be found below:
* The bar in red indicates where Sterling Tools'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.
Sterling Tools (NSE:STERTOOLS) has a Current Ratio of 1.97 as of Mar. 2026. This is near median its historical median of 2.06. Over the past decade, Sterling Tools' Current Ratio has ranged from 1.84 to 2.78. According to the industry distribution chart, Sterling Tools ranks #1531 out of 3070 companies in the Industrial Products industry, placing it in the top 49.9%.
Is Sterling Tools' Current Ratio too high?
Sterling Tools' current Current Ratio of 1.97 is near median its 10-year median of 2.06. Over the past 10 years, this metric has ranged from a low of 1.84 to a high of 2.78. The Industrial Products industry median Current Ratio is 1.97. Sterling Tools' value of 1.97 is 0% at this industry median. Based on the distribution chart, Sterling Tools ranks #1531 out of 3070 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Sterling Tools has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sterling Tools' Current Ratio compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Sterling Tools ranks #1531 out of 3070 companies for Current Ratio. This puts Sterling Tools in the upper half of its industry. The industry median Current Ratio is 1.97. Sterling Tools' value of 1.97 is 0% at this benchmark. Historically, Sterling Tools' own Current Ratio has ranged from 1.84 to 2.78 over the past decade. While the company's 10-year median is 2.06 vs. the industry median of 1.97, Sterling Tools has consistently been at 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 1.97, based on 3,070 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. Sterling Tools's current Current Ratio of 1.97 is 0% at 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 1.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sterling Tools's current Current Ratio is 1.97, which is near median its own 10-year median of 2.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sterling Tools stock overvalued right now?
Based on GuruFocus' analysis, Sterling Tools (NSE:STERTOOLS) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹331.67, compared to a current price of ₹244.58 — trading 26.3% below its estimated fair value. The current Current Ratio is 1.97, which is near median its 10-year median of 2.06 and 0% at the Industrial Products industry median of 1.97. Sterling Tools' overall GF Score™ is 87/100 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 Sterling Tools (NSE:STERTOOLS), the current Current Ratio is 1.97 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 Sterling Tools (NSE:STERTOOLS) Overvalued in 2026?
Based on GuruFocus' analysis, Sterling Tools stock appears to be undervalued.
The current stock price of ₹244.58 is trading 26.3% below its estimated GF Value™ of ₹331.67.
GuruFocus considers Sterling Tools to be Modestly Undervalued.
Key valuation signals for NSE:STERTOOLS:
Current Ratio: 1.97 (near median its 10-year median of 2.06)
GF Value™: ₹331.67 vs. price of ₹244.58 (26.3% below fair value)
Industry Position: 0% at the Industrial Products median (#1531 of 3070)
No single metric tells the full story. See the NSE:STERTOOLS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sterling Tools Ltd engages in the manufacture and trade of high tensile cold forged fasteners. The firm offers its products in various categories namely Standard Fasteners, Special Fasteners, Chassis Fasteners, and Engine Fasteners. Its products include bolts, nuts, screws, washers of iron and steel, and cold-forged high-tensile fasteners for automobiles, general engineering, consumer durables, railways, and the auto replacement industry. The company has Automotive components as the only operating segment Geographically, the majority of the revenue comes from India.
87GF Score
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