Polar PowerPOLA -7.78%45 Current Ratio is 1.23 as of Mar. 2026, which is 76% below its 10-year median of 5.20. GuruFocus rates POLA with a GF Score™ of 45/100 and a GF Value™ of $1.14 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 3,081 Industrial Products companies, Polar Power ranks worse than 82.18% 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. Polar Power's current ratio for the quarter that ended in Mar. 2026 was 1.23.
Polar Power has a current ratio of 1.23. It generally indicates good short-term financial strength.
The historical rank and industry rank for Polar Power's Current Ratio or its related term are showing as below:
POLA'
s Current Ratio Range Over the Past 10 Years
Min: 0.97 Med: 5.2 Max: 32.44
Current: 1.23
During the past 12 years, Polar Power's highest Current Ratio was 32.44. The lowest was 0.97. And the median was 5.20.
POLA's Current Ratio is ranked worse than 82.18% of 3081
companies
in the Industrial Products industry
Industry Median: 1.96
vs POLA: 1.23
Polar Power (NAS:POLA) 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.
Polar Power Current Ratio Related Terms
Polar Power Current Ratio Historical Data
* Premium members only.
The historical data trend for Polar Power'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.
POLA vs XPON, PWDY, TOGI: Current Ratio Comparison
For the Electrical Equipment & Parts subindustry, Polar Power'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.
Polar Power Current Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Polar Power's Current Ratio distribution charts can be found below:
* The bar in red indicates where Polar Power'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.
Polar Power (POLA) has a Current Ratio of 1.23 as of Mar. 2026. This is 76% below median its historical median of 5.20. Over the past decade, Polar Power's Current Ratio has ranged from 0.97 to 32.44. According to the industry distribution chart, Polar Power ranks #2532 out of 3081 companies in the Industrial Products industry, placing it in the top 82.2%.
Is Polar Power's Current Ratio too high?
Polar Power's current Current Ratio of 1.23 is 76% below median its 10-year median of 5.20. Over the past 10 years, this metric has ranged from a low of 0.97 to a high of 32.44. The Industrial Products industry median Current Ratio is 1.96. Polar Power's value of 1.23 is 37.2% below this industry median. Based on the distribution chart, Polar Power ranks #2532 out of 3081 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Polar Power has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Polar Power's Current Ratio compare to XPON and PWDY?
According to the Industrial Products industry distribution chart, Polar Power ranks #2532 out of 3081 companies for Current Ratio. This places Polar Power in the lower half of its industry. The industry median Current Ratio is 1.96. Polar Power's value of 1.23 is 37.2% below this benchmark. Historically, Polar Power's own Current Ratio has ranged from 0.97 to 32.44 over the past decade. While the company's 10-year median is 5.20 vs. the industry median of 1.96, Polar Power 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 3,081 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. Polar Power's current Current Ratio of 1.23 is 37.2% 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. Polar Power's current Current Ratio is 1.23, which is 76% below median its own 10-year median of 5.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Polar Power stock overvalued right now?
Based on GuruFocus' analysis, Polar Power (POLA) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.14, compared to a current price of $1.66 — trading 45.6% above its estimated fair value. The current Current Ratio is 1.23, which is 76% below median its 10-year median of 5.20 and 37.2% below the Industrial Products industry median of 1.96. Polar Power's overall GF Score™ is 45/100 with 7 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 Polar Power (POLA), the current Current Ratio is 1.23 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 Polar Power (POLA) Overvalued in 2026?
Based on GuruFocus' analysis, Polar Power stock appears to be overvalued.
The current stock price of $1.66 is trading 45.6% above its estimated GF Value™ of $1.14.
GuruFocus considers Polar Power to be Significantly Overvalued.
Key valuation signals for POLA:
Current Ratio: 1.23 (76% below median its 10-year median of 5.20)
GF Value™: $1.14 vs. price of $1.66 (45.6% above fair value)
Industry Position: 37.2% below the Industrial Products median (#2532 of 3081)
No single metric tells the full story. See the POLA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Polar Power Inc is engaged in designing, manufacturing, and selling DC power generators, renewable energy, and cooling systems for applications in the telecommunications market and, to a lesser extent, in other markets, including military, electric vehicle, marine, and industrial. The company's products include DC generators, backup DC generators, hybrid power systems, Li-Ion battery systems, Marine DC generators, and others. The company's geographical presence is in the United States, Canada, Australia and South Pacific Islands, Other Asia Pacific, Europe and Middle East, United Kingdom, and South Africa.
45GF Score
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