Volvo ABVOLAF -1.64%92 Current Ratio is 1.19 as of Mar. 2026, which is 4% below its 10-year median of 1.24. GuruFocus rates VOLAF with a GF Score™ of 92/100 and a GF Value™ of $28.60 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 211 Farm & Heavy Construction Machinery companies, Volvo AB ranks worse than 85.31% 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. Volvo AB's current ratio for the quarter that ended in Mar. 2026 was 1.19.
Volvo AB has a current ratio of 1.19. It generally indicates good short-term financial strength.
The historical rank and industry rank for Volvo AB's Current Ratio or its related term are showing as below:
VOLAF'
s Current Ratio Range Over the Past 10 Years
Min: 1 Med: 1.24 Max: 1.41
Current: 1.19
During the past 13 years, Volvo AB's highest Current Ratio was 1.41. The lowest was 1.00. And the median was 1.24.
VOLAF's Current Ratio is ranked worse than 85.31% of 211
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.81
vs VOLAF: 1.19
Volvo AB (OTCPK:VOLAF) 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.
Volvo AB Current Ratio Related Terms
Volvo AB Current Ratio Historical Data
* Premium members only.
The historical data trend for Volvo AB'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 Farm & Heavy Construction Machinery subindustry, Volvo AB'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.
Volvo AB Current Ratio vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's Current Ratio distribution charts can be found below:
* The bar in red indicates where Volvo AB'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.
Volvo AB (VOLAF) has a Current Ratio of 1.19 as of Mar. 2026. This is near median its historical median of 1.24. Over the past decade, Volvo AB's Current Ratio has ranged from 1.00 to 1.41. According to the industry distribution chart, Volvo AB ranks #180 out of 211 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 85.3%.
Is Volvo AB's Current Ratio too high?
Volvo AB's current Current Ratio of 1.19 is near median its 10-year median of 1.24. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 1.41. The Farm & Heavy Construction Machinery industry median Current Ratio is 1.81. Volvo AB's value of 1.19 is 34.3% below this industry median. Based on the distribution chart, Volvo AB ranks #180 out of 211 companies in the Farm & Heavy Construction Machinery industry, which is in the bottom quartile relative to peers. Overall, Volvo AB has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's Current Ratio compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #180 out of 211 companies for Current Ratio. This places Volvo AB in the lower half of its industry. The industry median Current Ratio is 1.81. Volvo AB's value of 1.19 is 34.3% below this benchmark. Historically, Volvo AB's own Current Ratio has ranged from 1.00 to 1.41 over the past decade. While the company's 10-year median is 1.24 vs. the industry median of 1.81, Volvo AB has consistently been below 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 Farm & Heavy Construction Machinery company?
The median Current Ratio among Farm & Heavy Construction Machinery companies is 1.81, based on 211 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. Volvo AB's current Current Ratio of 1.19 is 34.3% 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 Farm & Heavy Construction Machinery industry, the median Current Ratio is 1.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current Current Ratio is 1.19, which is near median its own 10-year median of 1.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Volvo AB stock overvalued right now?
Based on GuruFocus' analysis, Volvo AB (VOLAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $28.60, compared to a current price of $34.15 — trading 19.4% above its estimated fair value. The current Current Ratio is 1.19, which is near median its 10-year median of 1.24 and 34.3% below the Farm & Heavy Construction Machinery industry median of 1.81. Volvo AB's overall GF Score™ is 92/100 with 6 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 Volvo AB (VOLAF), the current Current Ratio is 1.19 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 Volvo AB (VOLAF) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued.
The current stock price of $34.15 is trading 19.4% above its estimated GF Value™ of $28.60.
GuruFocus considers Volvo AB to be Modestly Overvalued.
Key valuation signals for VOLAF:
Current Ratio: 1.19 (near median its 10-year median of 1.24)
GF Value™: $28.60 vs. price of $34.15 (19.4% above fair value)
Industry Position: 34.3% below the Farm & Heavy Construction Machinery median (#180 of 211)
No single metric tells the full story. See the VOLAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Volvo Group is one of the largest global truck, bus, construction equipment, and engine and power system original equipment manufacturers, operating with the Volvo, Renault Truck, Mack Trucks, Volvo Penta, and Nova Bus brands. Among the four largest Western global brands—Volvo, Daimler, Paccar, and Traton—Volvo ranks third in terms of annual deliveries. Its truck, construction equipment, bus, and engines and power system segments contributed 71%, 18%, 5%, and 5%, respectively, to industrial operations' revenue in 2025. An in-house financial services division supports these businesses. In its key regions of Europe, North America, Brazil, and Australia, the truck business holds large market shares of 29%, 17%, 24%, and 22%, respectively.
92GF Score
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