Memstar TechnologySGX:5MS Current Ratio is 0.18 as of Dec. 2019, which is 93% below its 10-year median of 2.64. The stock has 5 warning signs investors should review.
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. Memstar Technology's current ratio for the quarter that ended in Dec. 2019 was 0.18.
Memstar Technology has a current ratio of 0.18. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Memstar Technology has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Memstar Technology's Current Ratio or its related term are showing as below:
SGX:5MS'
s Current Ratio Range Over the Past 10 Years
Min: 1.35 Med: 2.64 Max: 40.13
Current: 12.28
During the past 12 years, Memstar Technology's highest Current Ratio was 40.13. The lowest was 1.35. And the median was 2.64.
SGX:5MS's Current Ratio is not ranked
in the Industrial Products industry.
Industry Median: 1.97
vs SGX:5MS: 12.28
Memstar Technology (SGX:5MS) 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.
Memstar Technology Current Ratio Related Terms
Memstar Technology Current Ratio Historical Data
* Premium members only.
The historical data trend for Memstar Technology'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.
Memstar Technology Current Ratio Competitor Comparison
For the Pollution & Treatment Controls subindustry, Memstar Technology'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.
Memstar Technology Current Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Memstar Technology's Current Ratio distribution charts can be found below:
* The bar in red indicates where Memstar Technology'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.
Memstar Technology (SGX:5MS) has a Current Ratio of 0.18 as of Dec. 2019. This is 93% below median its historical median of 2.64. Over the past decade, Memstar Technology's Current Ratio has ranged from 1.35 to 40.13.
Is Memstar Technology's Current Ratio too high?
Memstar Technology's current Current Ratio of 0.18 is 93% below median its 10-year median of 2.64. Over the past 10 years, this metric has ranged from a low of 1.35 to a high of 40.13. The Industrial Products industry median Current Ratio is 1.97. Memstar Technology's value of 0.18 is 90.9% below this industry median.
How does Memstar Technology's Current Ratio compare to competitors?
Memstar Technology's Current Ratio of 0.18 can be compared against companies in the Industrial Products industry. The industry median Current Ratio is 1.97. Memstar Technology's value of 0.18 is 90.9% below this benchmark. Historically, Memstar Technology's own Current Ratio has ranged from 1.35 to 40.13 over the past decade. While the company's 10-year median is 2.64 vs. the industry median of 1.97, Memstar Technology 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 1.97, based on 3,067 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. Memstar Technology's current Current Ratio of 0.18 is 90.9% 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 1.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Memstar Technology's current Current Ratio is 0.18, which is 93% below median its own 10-year median of 2.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Memstar Technology stock overvalued right now?
Memstar Technology (SGX:5MS) has a current Current Ratio of 0.18. The current Current Ratio is 0.18, which is 93% below median its 10-year median of 2.64 and 90.9% below the Industrial Products industry median of 1.97. 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 Memstar Technology (SGX:5MS), the current Current Ratio is 0.18 as of Dec. 2019. 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.
Memstar Technology Ltd is engaged in research, manufacturing, and application development of polyvinylidene fluoride (PVDF) hollow fiber membrane technology. The company products include Hollow Fiber - UF and MBR; Reverse Osmosis (RO) and Direct Competitor Replacements.
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