Taitron ComponentsTAIT +8.55%70 Current Ratio is 6.26 as of Sep. 2025, which is 38% below its 10-year median of 10.06. GuruFocus rates TAIT with a GF Score™ of 70/100 and a GF Value™ of $1.60 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,492 Hardware companies, Taitron Components ranks better than 90.25% 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. Taitron Components's current ratio for the quarter that ended in Sep. 2025 was 6.26.
Taitron Components has a current ratio of 6.26. 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 Taitron Components's Current Ratio or its related term are showing as below:
TAIT'
s Current Ratio Range Over the Past 10 Years
Min: 4.97 Med: 10.06 Max: 15.75
Current: 6.26
During the past 13 years, Taitron Components's highest Current Ratio was 15.75. The lowest was 4.97. And the median was 10.06.
TAIT's Current Ratio is ranked better than 90.25% of 2492
companies
in the Hardware industry
Industry Median: 1.96
vs TAIT: 6.26
Taitron Components (OTCPK:TAIT) 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.
Taitron Components Current Ratio Related Terms
Taitron Components Current Ratio Historical Data
* Premium members only.
The historical data trend for Taitron Components'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 Electronics & Computer Distribution subindustry, Taitron Components'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.
Taitron Components Current Ratio vs Hardware Industry
For the Hardware industry and Technology sector, Taitron Components's Current Ratio distribution charts can be found below:
* The bar in red indicates where Taitron Components'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.
Taitron Components (TAIT) has a Current Ratio of 6.26 as of Sep. 2025. This is 38% below median its historical median of 10.06. Over the past decade, Taitron Components' Current Ratio has ranged from 4.97 to 15.75. According to the industry distribution chart, Taitron Components ranks #243 out of 2492 companies in the Hardware industry, placing it in the top 9.8%.
Is Taitron Components' Current Ratio too high?
Taitron Components' current Current Ratio of 6.26 is 38% below median its 10-year median of 10.06. Over the past 10 years, this metric has ranged from a low of 4.97 to a high of 15.75. The Hardware industry median Current Ratio is 1.96. Taitron Components' value of 6.26 is 219.4% above this industry median. Based on the distribution chart, Taitron Components ranks #243 out of 2492 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Taitron Components has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Taitron Components' Current Ratio compare to IZM and SPRS?
According to the Hardware industry distribution chart, Taitron Components ranks #243 out of 2492 companies for Current Ratio. This places Taitron Components in the top 10% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.96. Taitron Components' value of 6.26 is 219.4% above this benchmark. Historically, Taitron Components' own Current Ratio has ranged from 4.97 to 15.75 over the past decade. While the company's 10-year median is 10.06 vs. the industry median of 1.96, Taitron Components 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 Hardware company?
The median Current Ratio among Hardware companies is 1.96, based on 2,492 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. Taitron Components's current Current Ratio of 6.26 is 219.4% 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 Hardware 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. Taitron Components's current Current Ratio is 6.26, which is 38% below median its own 10-year median of 10.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taitron Components stock overvalued right now?
Based on GuruFocus' analysis, Taitron Components (TAIT) is currently considered Fairly Valued. The stock's GF Value™ is $1.60, compared to a current price of $1.65 — trading 3.1% above its estimated fair value. The current Current Ratio is 6.26, which is 38% below median its 10-year median of 10.06 and 219.4% above the Hardware industry median of 1.96. Taitron Components' overall GF Score™ is 70/100 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 Taitron Components (TAIT), the current Current Ratio is 6.26 as of Sep. 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.
Is Taitron Components (TAIT) Overvalued in 2026?
Based on GuruFocus' analysis, Taitron Components stock appears to be overvalued.
The current stock price of $1.65 is trading 3.1% above its estimated GF Value™ of $1.60.
GuruFocus considers Taitron Components to be Fairly Valued.
Key valuation signals for TAIT:
Current Ratio: 6.26 (38% below median its 10-year median of 10.06)
GF Value™: $1.60 vs. price of $1.65 (3.1% above fair value)
Industry Position: 219.4% above the Hardware median (#243 of 2492)
No single metric tells the full story. See the TAIT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taitron Components Inc is a national distributor of brand name electronic components and supplier of original designed and manufactured (ODM) electronic components (ODM Components), with product offerings ranging from discrete semiconductors through small electronic devices. It also offer value-added engineering and turn-key services, focusing on providing contract electronic manufacturers ("CEM"s) and original equipment manufacturers (OEMs) with ODM services for their multi-year turn-key projects. The company maintain two divisions in Taiwan and China.
70GF Score
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