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. Safeguard Scientifics's current ratio for the quarter that ended in Dec. 2023 was 4.84.
Safeguard Scientifics has a current ratio of 4.84. 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 Safeguard Scientifics's Current Ratio or its related term are showing as below:
SFES's Current Ratio is not ranked *
in the Asset Management industry.
Industry Median: 3.01 * Ranked among companies with meaningful Current Ratio only.
Safeguard Scientifics (OTCPK:SFES) 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.
Safeguard Scientifics Current Ratio Related Terms
Safeguard Scientifics Current Ratio Historical Data
* Premium members only.
The historical data trend for Safeguard Scientifics'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.
For the Asset Management subindustry, Safeguard Scientifics'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.
Safeguard Scientifics Current Ratio vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Safeguard Scientifics's Current Ratio distribution charts can be found below:
* The bar in red indicates where Safeguard Scientifics'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.
Safeguard Scientifics (SFES) has a Current Ratio of 4.84 as of Dec. 2023.
Is Safeguard Scientifics' Current Ratio too high?
Safeguard Scientifics' current Current Ratio is 4.84. The Asset Management industry median Current Ratio is 3.01. Safeguard Scientifics' value of 4.84 is 60.8% above this industry median. Overall, Safeguard Scientifics has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Safeguard Scientifics' Current Ratio compare to PIAC and EQS?
Safeguard Scientifics' Current Ratio of 4.84 can be compared against companies in the Asset Management industry. The industry median Current Ratio is 3.01. Safeguard Scientifics' value of 4.84 is 60.8% above this benchmark. 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 Asset Management company?
The median Current Ratio among Asset Management companies is 3.01, based on 709 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. Safeguard Scientifics's current Current Ratio of 4.84 is 60.8% 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 Asset Management industry, the median Current Ratio is 3.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Safeguard Scientifics's current Current Ratio is 4.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Safeguard Scientifics stock overvalued right now?
Safeguard Scientifics (SFES) has a current Current Ratio of 4.84. The current Current Ratio is 4.84 and 60.8% above the Asset Management industry median of 3.01. Safeguard Scientifics' overall GF Score™ is 12/100. 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 Safeguard Scientifics (SFES), the current Current Ratio is 4.84 as of Dec. 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.
Safeguard Scientifics Inc is a holding/investment monetization company managing legacy portfolio investments, rather than an actively growing venture investor. The firm offers strategic, operational, and management support to certain of its ownership interests. Representatives of the firm serve on the boards of directors of certain of its holding/investment companies, working with them to develop and implement strategic and operating plans.
12GF Score
Get the complete analysis for SFES
Current Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SFES has been successfully added to your 
