Fonterra Co-operative GroupNZSE:FCG -1.17%65 Current Ratio is 1.76 as of Jan. 2026, which is 35% above its 10-year median of 1.30. GuruFocus rates NZSE:FCG with a GF Score™ of 65/100 and a GF Value™ of NZ$2.96 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,985 Consumer Packaged Goods companies, Fonterra Co-operative Group ranks better than 51.18% 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. Fonterra Co-operative Group's current ratio for the quarter that ended in Jan. 2026 was 1.76.
Fonterra Co-operative Group has a current ratio of 1.76. It generally indicates good short-term financial strength.
The historical rank and industry rank for Fonterra Co-operative Group's Current Ratio or its related term are showing as below:
NZSE:FCG'
s Current Ratio Range Over the Past 10 Years
Min: 1.15 Med: 1.3 Max: 1.76
Current: 1.76
During the past 13 years, Fonterra Co-operative Group's highest Current Ratio was 1.76. The lowest was 1.15. And the median was 1.30.
NZSE:FCG's Current Ratio is ranked better than 51.18% of 1985
companies
in the Consumer Packaged Goods industry
Industry Median: 1.73
vs NZSE:FCG: 1.76
Fonterra Co-operative Group (NZSE:FCG) 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.
Fonterra Co-operative Group Current Ratio Related Terms
Fonterra Co-operative Group 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.
NZSE:FCG vs KHC, GIS, HRL: Current Ratio Comparison
For the Packaged Foods subindustry, Fonterra Co-operative Group'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.
Fonterra Co-operative Group Current Ratio vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Fonterra Co-operative Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Fonterra Co-operative Group'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.
Fonterra Co-operative Group (NZSE:FCG) has a Current Ratio of 1.76 as of Jan. 2026. This is 35% above median its historical median of 1.30. Over the past decade, Fonterra Co-operative Group's Current Ratio has ranged from 1.15 to 1.76. According to the industry distribution chart, Fonterra Co-operative Group ranks #969 out of 1985 companies in the Consumer Packaged Goods industry, placing it in the top 48.8%.
Is Fonterra Co-operative Group's Current Ratio too high?
Fonterra Co-operative Group's current Current Ratio of 1.76 is 35% above median its 10-year median of 1.30. Over the past 10 years, this metric has ranged from a low of 1.15 to a high of 1.76. The Consumer Packaged Goods industry median Current Ratio is 1.73. Fonterra Co-operative Group's value of 1.76 is 1.7% above this industry median. Based on the distribution chart, Fonterra Co-operative Group ranks #969 out of 1985 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Fonterra Co-operative Group has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fonterra Co-operative Group's Current Ratio compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Fonterra Co-operative Group ranks #969 out of 1985 companies for Current Ratio. This puts Fonterra Co-operative Group in the upper half of its industry. The industry median Current Ratio is 1.73. Fonterra Co-operative Group's value of 1.76 is 1.7% above this benchmark. Historically, Fonterra Co-operative Group's own Current Ratio has ranged from 1.15 to 1.76 over the past decade. While the company's 10-year median is 1.30 vs. the industry median of 1.73, Fonterra Co-operative Group 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 Consumer Packaged Goods company?
The median Current Ratio among Consumer Packaged Goods companies is 1.73, based on 1,985 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. Fonterra Co-operative Group's current Current Ratio of 1.76 is 1.7% 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 Consumer Packaged Goods industry, the median Current Ratio is 1.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fonterra Co-operative Group's current Current Ratio is 1.76, which is 35% above median its own 10-year median of 1.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fonterra Co-operative Group stock overvalued right now?
Based on GuruFocus' analysis, Fonterra Co-operative Group (NZSE:FCG) is currently considered Significantly Overvalued. The stock's GF Value™ is NZ$2.96, compared to a current price of NZ$4.21 — trading 42.2% above its estimated fair value. The current Current Ratio is 1.76, which is 35% above median its 10-year median of 1.30 and 1.7% above the Consumer Packaged Goods industry median of 1.73. Fonterra Co-operative Group's overall GF Score™ is 65/100 with 6 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 Fonterra Co-operative Group (NZSE:FCG), the current Current Ratio is 1.76 as of Jan. 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 Fonterra Co-operative Group (NZSE:FCG) Overvalued in 2026?
Based on GuruFocus' analysis, Fonterra Co-operative Group stock appears to be overvalued.
The current stock price of NZ$4.21 is trading 42.2% above its estimated GF Value™ of NZ$2.96.
GuruFocus considers Fonterra Co-operative Group to be Significantly Overvalued.
Key valuation signals for NZSE:FCG:
Current Ratio: 1.76 (35% above median its 10-year median of 1.30)
GF Value™: NZ$2.96 vs. price of NZ$4.21 (42.2% above fair value)
Industry Position: 1.7% above the Consumer Packaged Goods median (#969 of 1985)
No single metric tells the full story. See the NZSE:FCG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fonterra Co-operative Group Ltd operates predominantly in the international dairy industry. The company is involved in the collection, manufacture, and sale of milk and milk-derived products through its ingredients, Consumer and Foodservice channels. The company's reportable segments are Global Markets, Greater China, and Core Operations and the majority of the revenue is generated from its core operations segment. Its primary geographic markets is Asia, China, Australia, New Zealand, the United States, and the Rest of the world.
65GF Score
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