User LocalTSE:3984 +0.90%97 Current Ratio is 7.69 as of Dec. 2025, which is 16% below its 10-year median of 9.17. GuruFocus rates TSE:3984 with a GF Score™ of 97/100 and a GF Value™ of 円2,110.96 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,869 Software companies, User Local ranks better than 93.62% 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. User Local's current ratio for the quarter that ended in Dec. 2025 was 7.69.
User Local has a current ratio of 7.69. 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 User Local's Current Ratio or its related term are showing as below:
TSE:3984'
s Current Ratio Range Over the Past 10 Years
Min: 5.9 Med: 9.17 Max: 12.04
Current: 8.05
During the past 11 years, User Local's highest Current Ratio was 12.04. The lowest was 5.90. And the median was 9.17.
TSE:3984's Current Ratio is ranked better than 93.62% of 2869
companies
in the Software industry
Industry Median: 1.82
vs TSE:3984: 8.05
User Local (TSE:3984) 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.
User Local Current Ratio Related Terms
User Local Current Ratio Historical Data
* Premium members only.
The historical data trend for User Local'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:3984 vs IBM, ACN, FISV: Current Ratio Comparison
For the Information Technology Services subindustry, User Local'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.
User Local Current Ratio vs Software Industry
For the Software industry and Technology sector, User Local's Current Ratio distribution charts can be found below:
* The bar in red indicates where User Local'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.
User Local (TSE:3984) has a Current Ratio of 7.69 as of Dec. 2025. This is 16% below median its historical median of 9.17. Over the past decade, User Local's Current Ratio has ranged from 5.90 to 12.04. According to the industry distribution chart, User Local ranks #183 out of 2869 companies in the Software industry, placing it in the top 6.4%.
Is User Local's Current Ratio too high?
User Local's current Current Ratio of 7.69 is 16% below median its 10-year median of 9.17. Over the past 10 years, this metric has ranged from a low of 5.90 to a high of 12.04. The Software industry median Current Ratio is 1.82. User Local's value of 7.69 is 322.5% above this industry median. Based on the distribution chart, User Local ranks #183 out of 2869 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, User Local has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does User Local's Current Ratio compare to IBM and ACN?
According to the Software industry distribution chart, User Local ranks #183 out of 2869 companies for Current Ratio. This places User Local in the top 6% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.82. User Local's value of 7.69 is 322.5% above this benchmark. Historically, User Local's own Current Ratio has ranged from 5.90 to 12.04 over the past decade. While the company's 10-year median is 9.17 vs. the industry median of 1.82, User Local 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 1.82, based on 2,869 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. User Local's current Current Ratio of 7.69 is 322.5% 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 1.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. User Local's current Current Ratio is 7.69, which is 16% below median its own 10-year median of 9.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is User Local stock overvalued right now?
Based on GuruFocus' analysis, User Local (TSE:3984) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,110.96, compared to a current price of 円1,784.00 — trading 15.5% below its estimated fair value. The current Current Ratio is 7.69, which is 16% below median its 10-year median of 9.17 and 322.5% above the Software industry median of 1.82. User Local's overall GF Score™ is 97/100 with 1 warning sign 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 User Local (TSE:3984), the current Current Ratio is 7.69 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.
Is User Local (TSE:3984) Overvalued in 2026?
Based on GuruFocus' analysis, User Local stock appears to be undervalued.
The current stock price of 円1,784.00 is trading 15.5% below its estimated GF Value™ of 円2,110.96.
GuruFocus considers User Local to be Modestly Undervalued.
Key valuation signals for TSE:3984:
Current Ratio: 7.69 (16% below median its 10-year median of 9.17)
GF Value™: 円2,110.96 vs. price of 円1,784.00 (15.5% below fair value)
Industry Position: 322.5% above the Software median (#183 of 2869)
No single metric tells the full story. See the TSE:3984 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
User Local Inc is engaged in the research and development of big data analysis system, web marketing support tool, offering media analysis tool, and managing artificial intelligence chat bot.
97GF Score
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