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. Otonomo Technologies's current ratio for the quarter that ended in Jun. 2023 was 12.22.
Otonomo Technologies has a current ratio of 12.22. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Otonomo Technologies's Current Ratio or its related term are showing as below:
OTMOW'
s Current Ratio Range Over the Past 10 Years
Min: 2.56 Med: 10 Max: 24.2
Current: 12.22
During the past 4 years, Otonomo Technologies's highest Current Ratio was 24.20. The lowest was 2.56. And the median was 10.00.
OTMOW's Current Ratio is not ranked
in the Software industry.
Industry Median: 1.81
vs OTMOW: 12.22
Otonomo Technologies (NAS:OTMOW) 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.
Otonomo Technologies Current Ratio Related Terms
Otonomo Technologies Current Ratio Historical Data
* Premium members only.
The historical data trend for Otonomo Technologies'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.
OTMOW vs AEYE, GOLQ, PRCH: Current Ratio Comparison
For the Software - Application subindustry, Otonomo Technologies'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.
Otonomo Technologies Current Ratio vs Software Industry
For the Software industry and Technology sector, Otonomo Technologies's Current Ratio distribution charts can be found below:
* The bar in red indicates where Otonomo Technologies'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.
Otonomo Technologies (OTMOW) has a Current Ratio of 12.22 as of Jun. 2023. This is 22% above median its historical median of 10.00. Over the past decade, Otonomo Technologies' Current Ratio has ranged from 2.56 to 24.20.
Is Otonomo Technologies' Current Ratio too high?
Otonomo Technologies' current Current Ratio of 12.22 is 22% above median its 10-year median of 10.00. Over the past 10 years, this metric has ranged from a low of 2.56 to a high of 24.20. The Software industry median Current Ratio is 1.81. Otonomo Technologies' value of 12.22 is 575.1% above this industry median. Overall, Otonomo Technologies has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Otonomo Technologies' Current Ratio compare to AEYE and GOLQ?
Otonomo Technologies' Current Ratio of 12.22 can be compared against companies in the Software industry. The industry median Current Ratio is 1.81. Otonomo Technologies' value of 12.22 is 575.1% above this benchmark. Historically, Otonomo Technologies' own Current Ratio has ranged from 2.56 to 24.20 over the past decade. While the company's 10-year median is 10.00 vs. the industry median of 1.81, Otonomo Technologies 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 Software company?
The median Current Ratio among Software companies is 1.81, based on 2,862 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. Otonomo Technologies's current Current Ratio of 12.22 is 575.1% 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 Software industry, the median Current Ratio is 1.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otonomo Technologies's current Current Ratio is 12.22, which is 22% above median its own 10-year median of 10.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otonomo Technologies stock overvalued right now?
Otonomo Technologies (OTMOW) has a current Current Ratio of 12.22. The current Current Ratio is 12.22, which is 22% above median its 10-year median of 10.00 and 575.1% above the Software industry median of 1.81. Otonomo Technologies' 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 Otonomo Technologies (OTMOW), the current Current Ratio is 12.22 as of Jun. 2023. 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.
Otonomo Technologies Ltd is a provider of vehicle data. It delivers the Otonomo Vehicle Data Platform and marketplace that enables car manufacturers, drivers, and service providers to be part of a connected ecosystem. Its vehicle data marketplace is a neutral intermediary between vehicle data providers and data consumers. It provides secure and equal access to hundreds of data attributes that reveal insights into driver behaviour, vehicle health, road hazards, environmental conditions, and traffic trends. Geographically it operates in APAC, and USA whilst earning key revenue from the EMEA region.
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