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Softfront HoldingsTSE:2321 +5.00%47 Current Ratio is 13.55 as of Mar. 2026, which is 179% above its 10-year median of 4.85. GuruFocus rates TSE:2321 with a GF Score™ of 47/100 and a GF Value™ of 円68.32 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,878 Software companies, Softfront Holdings ranks better than 97.22% 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. Softfront Holdings's current ratio for the quarter that ended in Mar. 2026 was 13.55.
Softfront Holdings has a current ratio of 13.55. 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 Softfront Holdings's Current Ratio or its related term are showing as below:
TSE:2321'
s Current Ratio Range Over the Past 10 Years
Min: 0.7 Med: 4.85 Max: 13.55
Current: 13.55
During the past 13 years, Softfront Holdings's highest Current Ratio was 13.55. The lowest was 0.70. And the median was 4.85.
TSE:2321's Current Ratio is ranked better than 97.22% of 2878
companies
in the Software industry
Industry Median: 1.8
vs TSE:2321: 13.55
Softfront Holdings (TSE:2321) 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.
Softfront Holdings Current Ratio Related Terms
Softfront Holdings Current Ratio Historical Data
* Premium members only.
The historical data trend for Softfront Holdings'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.
TSE:2321 vs QH, SHOP, UBER: Current Ratio Comparison
For the Software - Application subindustry, Softfront Holdings'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.
Softfront Holdings Current Ratio vs Software Industry
For the Software industry and Technology sector, Softfront Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Softfront Holdings'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.
Softfront Holdings (TSE:2321) has a Current Ratio of 13.55 as of Mar. 2026. This is 179% above median its historical median of 4.85. Over the past decade, Softfront Holdings' Current Ratio has ranged from 0.70 to 13.55. According to the industry distribution chart, Softfront Holdings ranks #80 out of 2878 companies in the Software industry, placing it in the top 2.8%.
Is Softfront Holdings' Current Ratio too high?
Softfront Holdings' current Current Ratio of 13.55 is 179% above median its 10-year median of 4.85. Over the past 10 years, this metric has ranged from a low of 0.70 to a high of 13.55. The Software industry median Current Ratio is 1.80. Softfront Holdings' value of 13.55 is 652.8% above this industry median. Based on the distribution chart, Softfront Holdings ranks #80 out of 2878 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Softfront Holdings has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Softfront Holdings' Current Ratio compare to QH and SHOP?
According to the Software industry distribution chart, Softfront Holdings ranks #80 out of 2878 companies for Current Ratio. This places Softfront Holdings in the top 3% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.80. Softfront Holdings' value of 13.55 is 652.8% above this benchmark. Historically, Softfront Holdings' own Current Ratio has ranged from 0.70 to 13.55 over the past decade. While the company's 10-year median is 4.85 vs. the industry median of 1.80, Softfront Holdings 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 Software company?
The median Current Ratio among Software companies is 1.80, based on 2,878 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. Softfront Holdings's current Current Ratio of 13.55 is 652.8% 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 Software industry, the median Current Ratio is 1.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Softfront Holdings's current Current Ratio is 13.55, which is 179% above median its own 10-year median of 4.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Softfront Holdings stock overvalued right now?
Based on GuruFocus' analysis, Softfront Holdings (TSE:2321) is currently considered Significantly Overvalued. The stock's GF Value™ is 円68.32, compared to a current price of 円126.00 — trading 84.4% above its estimated fair value. The current Current Ratio is 13.55, which is 179% above median its 10-year median of 4.85 and 652.8% above the Software industry median of 1.80. Softfront Holdings' overall GF Score™ is 47/100 with 4 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 Softfront Holdings (TSE:2321), the current Current Ratio is 13.55 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 Softfront Holdings (TSE:2321) Overvalued in 2026?
Based on GuruFocus' analysis, Softfront Holdings stock appears to be overvalued.
The current stock price of 円126.00 is trading 84.4% above its estimated GF Value™ of 円68.32.
GuruFocus considers Softfront Holdings to be Significantly Overvalued.
Key valuation signals for TSE:2321:
Current Ratio: 13.55 (179% above median its 10-year median of 4.85)
GF Value™: 円68.32 vs. price of 円126.00 (84.4% above fair value)
Industry Position: 652.8% above the Software median (#80 of 2878)
No single metric tells the full story. See the TSE:2321 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Softfront Holdings is engaged in contract development consultation in Japan. It also provides technical assistance for the software development environment that provides the core technology and SIP / VoIP. Its core activity includes communications technology. The group operates in a single segment, the communications platform-related business.
47GF Score
Get the complete analysis for TSE:2321
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