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. Water on Demand's current ratio for the quarter that ended in Sep. 2023 was 0.35.
Water on Demand has a current ratio of 0.35. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Water on Demand 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 Water on Demand's Current Ratio or its related term are showing as below:
WODI's Current Ratio is not ranked *
in the Waste Management industry.
Industry Median: 1.54 * Ranked among companies with meaningful Current Ratio only.
Water on Demand (NAS:WODI) 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.
Water on Demand Current Ratio Related Terms
Water on Demand Current Ratio Historical Data
* Premium members only.
The historical data trend for Water on Demand'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.
Water on Demand Current Ratio Chart
Water on Demand Annual Data
Trend
Dec21
Dec22
Current Ratio
0.93
1.10
Water on Demand Quarterly Data
Dec21
Dec22
Sep23
Current Ratio
0.93
1.10
0.35
WODI vs : Current Ratio Comparison
For the Waste Management subindustry, Water on Demand'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.
Water on Demand Current Ratio vs Waste Management Industry
For the Waste Management industry and Industrials sector, Water on Demand's Current Ratio distribution charts can be found below:
* The bar in red indicates where Water on Demand'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.
Water on Demand (WODI) has a Current Ratio of 0.35 as of Sep. 2023.
Is Water on Demand's Current Ratio too high?
Water on Demand's current Current Ratio is 0.35. The Waste Management industry median Current Ratio is 1.54. Water on Demand's value of 0.35 is 77.3% below this industry median.
How does Water on Demand's Current Ratio compare to ?
Water on Demand's Current Ratio of 0.35 can be compared against companies in the Waste Management industry. The industry median Current Ratio is 1.54. Water on Demand's value of 0.35 is 77.3% 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 Waste Management company?
The median Current Ratio among Waste Management companies is 1.54, based on 246 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. Water on Demand's current Current Ratio of 0.35 is 77.3% 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 Waste Management industry, the median Current Ratio is 1.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Water on Demand's current Current Ratio is 0.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Water on Demand stock overvalued right now?
Water on Demand (WODI) has a current Current Ratio of 0.35. The current Current Ratio is 0.35 and 77.3% below the Waste Management industry median of 1.54. 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 Water on Demand (WODI), the current Current Ratio is 0.35 as of Sep. 2023. 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.
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