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Union Tool CoTSE:6278 -8.63%79 Current Ratio is 6.84 as of Dec. 2025, which is 17% below its 10-year median of 8.23. GuruFocus rates TSE:6278 with a GF Score™ of 79/100 and a GF Value™ of 円7,748.96 (Significantly Overvalued). Among 3,072 Industrial Products companies, Union Tool Co ranks better than 92.06% 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. Union Tool Co's current ratio for the quarter that ended in Dec. 2025 was 6.84.
Union Tool Co has a current ratio of 6.84. 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 Union Tool Co's Current Ratio or its related term are showing as below:
TSE:6278'
s Current Ratio Range Over the Past 10 Years
Min: 6.03 Med: 8.23 Max: 14.64
Current: 6.03
During the past 13 years, Union Tool Co's highest Current Ratio was 14.64. The lowest was 6.03. And the median was 8.23.
TSE:6278's Current Ratio is ranked better than 92.06% of 3072
companies
in the Industrial Products industry
Industry Median: 1.96
vs TSE:6278: 6.03
Union Tool Co (TSE:6278) 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.
Union Tool Co Current Ratio Related Terms
Union Tool Co Current Ratio Historical Data
* Premium members only.
The historical data trend for Union Tool Co'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:6278 vs SNA, RBC, LECO: Current Ratio Comparison
For the Tools & Accessories subindustry, Union Tool Co'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.
Union Tool Co Current Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Union Tool Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Union Tool Co'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.
Union Tool Co (TSE:6278) has a Current Ratio of 6.84 as of Dec. 2025. This is 17% below median its historical median of 8.23. Over the past decade, Union Tool Co's Current Ratio has ranged from 6.03 to 14.64. According to the industry distribution chart, Union Tool Co ranks #244 out of 3072 companies in the Industrial Products industry, placing it in the top 7.9%.
Is Union Tool Co's Current Ratio too high?
Union Tool Co's current Current Ratio of 6.84 is 17% below median its 10-year median of 8.23. Over the past 10 years, this metric has ranged from a low of 6.03 to a high of 14.64. The Industrial Products industry median Current Ratio is 1.96. Union Tool Co's value of 6.84 is 249% above this industry median. Based on the distribution chart, Union Tool Co ranks #244 out of 3072 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Union Tool Co has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Union Tool Co's Current Ratio compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Union Tool Co ranks #244 out of 3072 companies for Current Ratio. This places Union Tool Co in the top 8% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.96. Union Tool Co's value of 6.84 is 249% above this benchmark. Historically, Union Tool Co's own Current Ratio has ranged from 6.03 to 14.64 over the past decade. While the company's 10-year median is 8.23 vs. the industry median of 1.96, Union Tool Co 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 an Industrial Products company?
The median Current Ratio among Industrial Products companies is 1.96, based on 3,072 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. Union Tool Co's current Current Ratio of 6.84 is 249% 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 Industrial Products 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. Union Tool Co's current Current Ratio is 6.84, which is 17% below median its own 10-year median of 8.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Union Tool Co stock overvalued right now?
Based on GuruFocus' analysis, Union Tool Co (TSE:6278) is currently considered Significantly Overvalued. The stock's GF Value™ is 円7,748.96, compared to a current price of 円17,250.00 — trading 122.6% above its estimated fair value. The current Current Ratio is 6.84, which is 17% below median its 10-year median of 8.23 and 249% above the Industrial Products industry median of 1.96. Union Tool Co's overall GF Score™ is 79/100. 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 Union Tool Co (TSE:6278), the current Current Ratio is 6.84 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 Union Tool Co (TSE:6278) Overvalued in 2026?
Based on GuruFocus' analysis, Union Tool Co stock appears to be overvalued.
The current stock price of 円17,250.00 is trading 122.6% above its estimated GF Value™ of 円7,748.96.
GuruFocus considers Union Tool Co to be Significantly Overvalued.
Key valuation signals for TSE:6278:
Current Ratio: 6.84 (17% below median its 10-year median of 8.23)
GF Value™: 円7,748.96 vs. price of 円17,250.00 (122.6% above fair value)
Industry Position: 249% above the Industrial Products median (#244 of 3072)
No single metric tells the full story. See the TSE:6278 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Union Tool Co is a designer and manufacturer of industrial cutting tools to a broad sector of the global industry. The company's key product includes carbide drill used in the manufacture of Printed Circuit Boards, found in all modern electronics. It also manufactures precision machinery including linear motion guides, diesinking end-mills, and digital measuring equipment for industrial use. The company has operations in Japan, Asia, North America and Europe.
79GF Score
Get the complete analysis for TSE:6278
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