TWER (Towerstream) Current Ratio: 0.13 (As of Dec. 2018)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Towerstream Current Ratio?

Towerstream TWER Current Ratio is 0.13 as of Dec. 2018.

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. Towerstream's current ratio for the quarter that ended in Dec. 2018 was 0.13.

Towerstream has a current ratio of 0.13. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Towerstream 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 Towerstream's Current Ratio or its related term are showing as below:

TWER's Current Ratio is not ranked *
in the Telecommunication Services industry.
Industry Median: 1.125
* Ranked among companies with meaningful Current Ratio only.

Towerstream  (OTCPK:TWER) 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.


Towerstream Current Ratio Related Terms


Towerstream Current Ratio Historical Data

* Premium members only.

The historical data trend for Towerstream'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.

Towerstream Current Ratio Chart

Towerstream Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Current Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.26 2.51 0.37 0.22 0.13

Towerstream Quarterly Data
Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18
Current Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.22 0.17 0.14 0.12 0.13

TWER vs FULO, DTGI: Current Ratio Comparison

For the Telecom Services subindustry, Towerstream'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.


Towerstream Current Ratio vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Towerstream's Current Ratio distribution charts can be found below:

* The bar in red indicates where Towerstream's Current Ratio falls into.



Towerstream Current Ratio Calculation

The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.

Towerstream's Current Ratio for the fiscal year that ended in Dec. 2018 is calculated as

Current Ratio (A: Dec. 2018 )=Total Current Assets (A: Dec. 2018 )/Total Current Liabilities (A: Dec. 2018 )
=5.312/42.177
=0.13

Towerstream's Current Ratio for the quarter that ended in Dec. 2018 is calculated as

Current Ratio (Q: Dec. 2018 )=Total Current Assets (Q: Dec. 2018 )/Total Current Liabilities (Q: Dec. 2018 )
=5.312/42.177
=0.13

* 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.

Frequently Asked Questions Learn more about Current Ratio →
What does a Current Ratio of 0.13 mean?
Towerstream (TWER) has a Current Ratio of 0.13 as of Dec. 2018.
Is Towerstream's Current Ratio too high?
Towerstream's current Current Ratio is 0.13. The Telecommunication Services industry median Current Ratio is 1.13. Towerstream's value of 0.13 is 88.4% below this industry median.
How does Towerstream's Current Ratio compare to FULO and DTGI?
Towerstream's Current Ratio of 0.13 can be compared against companies in the Telecommunication Services industry. The industry median Current Ratio is 1.13. Towerstream's value of 0.13 is 88.4% below this benchmark. 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 Telecommunication Services company?
The median Current Ratio among Telecommunication Services companies is 1.13, based on 366 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. Towerstream's current Current Ratio of 0.13 is 88.4% 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 Telecommunication Services industry, the median Current Ratio is 1.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Towerstream's current Current Ratio is 0.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Towerstream stock overvalued right now?
Towerstream (TWER) has a current Current Ratio of 0.13. The current Current Ratio is 0.13 and 88.4% below the Telecommunication Services industry median of 1.13. 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 Towerstream (TWER), the current Current Ratio is 0.13 as of Dec. 2018. 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.

Towerstream Business Description

Address 76 Hammarlund Way, Middletown, RI, USA, 02842
Towerstream Corp is a US-based company providing fixed wireless services. The company operates through the Fixed Wireless Services business segment. Its fixed wireless service provides bandwidth on demand, wireless redundancy, virtual private networks, disaster recovery, bundled data and video services. The company installs receivers and antennas on rooftops to establish a wireless connection between the customer Location to one or more of its points of presence.