Rainbow Rare EarthsRBWRF 21 Current Ratio is 1.22 as of Dec. 2025, which is 37% below its 10-year median of 1.94. GuruFocus rates RBWRF with a GF Score™ of 21/100 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 2,637 Metals & Mining companies, Rainbow Rare Earths ranks worse than 71.18% 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. Rainbow Rare Earths's current ratio for the quarter that ended in Dec. 2025 was 1.22.
Rainbow Rare Earths has a current ratio of 1.22. It generally indicates good short-term financial strength.
The historical rank and industry rank for Rainbow Rare Earths's Current Ratio or its related term are showing as below:
RBWRF'
s Current Ratio Range Over the Past 10 Years
Min: 0.03 Med: 1.94 Max: 7.17
Current: 1.22
During the past 12 years, Rainbow Rare Earths's highest Current Ratio was 7.17. The lowest was 0.03. And the median was 1.94.
RBWRF's Current Ratio is ranked worse than 71.18% of 2637
companies
in the Metals & Mining industry
Industry Median: 2.64
vs RBWRF: 1.22
Rainbow Rare Earths (OTCPK:RBWRF) 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.
Rainbow Rare Earths Current Ratio Related Terms
Rainbow Rare Earths Current Ratio Historical Data
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The historical data trend for Rainbow Rare Earths'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.
Rainbow Rare Earths Current Ratio Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Rainbow Rare Earths'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.
Rainbow Rare Earths Current Ratio vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Rainbow Rare Earths's Current Ratio distribution charts can be found below:
* The bar in red indicates where Rainbow Rare Earths'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.
Rainbow Rare Earths (RBWRF) has a Current Ratio of 1.22 as of Dec. 2025. This is 37% below median its historical median of 1.94. Over the past decade, Rainbow Rare Earths' Current Ratio has ranged from 0.03 to 7.17. According to the industry distribution chart, Rainbow Rare Earths ranks #1877 out of 2637 companies in the Metals & Mining industry, placing it in the top 71.2%.
Is Rainbow Rare Earths' Current Ratio too high?
Rainbow Rare Earths' current Current Ratio of 1.22 is 37% below median its 10-year median of 1.94. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 7.17. The Metals & Mining industry median Current Ratio is 2.64. Rainbow Rare Earths' value of 1.22 is 53.8% below this industry median. Based on the distribution chart, Rainbow Rare Earths ranks #1877 out of 2637 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, Rainbow Rare Earths has a GF Score™ of 21/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rainbow Rare Earths' Current Ratio compare to competitors?
According to the Metals & Mining industry distribution chart, Rainbow Rare Earths ranks #1877 out of 2637 companies for Current Ratio. This places Rainbow Rare Earths in the lower half of its industry. The industry median Current Ratio is 2.64. Rainbow Rare Earths' value of 1.22 is 53.8% below this benchmark. Historically, Rainbow Rare Earths' own Current Ratio has ranged from 0.03 to 7.17 over the past decade. While the company's 10-year median is 1.94 vs. the industry median of 2.64, Rainbow Rare Earths 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 a Metals & Mining company?
The median Current Ratio among Metals & Mining companies is 2.64, based on 2,637 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. Rainbow Rare Earths's current Current Ratio of 1.22 is 53.8% 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 Metals & Mining industry, the median Current Ratio is 2.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rainbow Rare Earths's current Current Ratio is 1.22, which is 37% below median its own 10-year median of 1.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rainbow Rare Earths stock overvalued right now?
Based on GuruFocus' analysis, Rainbow Rare Earths (RBWRF) is currently considered Modestly Overvalued. The current Current Ratio is 1.22, which is 37% below median its 10-year median of 1.94 and 53.8% below the Metals & Mining industry median of 2.64. Rainbow Rare Earths' overall GF Score™ is 21/100 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 Rainbow Rare Earths (RBWRF), the current Current Ratio is 1.22 as of Dec. 2025. 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.
Rainbow Rare Earths Ltd is focused on the development of an independent and ethical supply chain of the rare earth elements that are driving the green energy transition. The company is advancing two projects, Phalaborwa in South Africa and Uberaba in Brazil, which are intended to produce rare earth elements for industrial, energy, and defence applications.
21GF Score
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