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. Applied Digital's current ratio for the quarter that ended in Feb. 2026 was 2.38.
Applied Digital has a current ratio of 2.38. It generally indicates good short-term financial strength.
The historical rank and industry rank for Applied Digital's Current Ratio or its related term are showing as below:
XSWX:APLD'
s Current Ratio Range Over the Past 10 Years
Min: 0.18 Med: 0.75 Max: 5.93
Current: 2.38
During the past 13 years, Applied Digital's highest Current Ratio was 5.93. The lowest was 0.18. And the median was 0.75.
XSWX:APLD's Current Ratio is ranked better than 63.36% of 2866
companies
in the Software industry
Industry Median: 1.815
vs XSWX:APLD: 2.38
Applied Digital (XSWX:APLD) 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.
Applied Digital Current Ratio Related Terms
Applied Digital Current Ratio Historical Data
* Premium members only.
The historical data trend for Applied Digital'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 Information Technology Services subindustry, Applied Digital'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.
Applied Digital Current Ratio vs Software Industry
For the Software industry and Technology sector, Applied Digital's Current Ratio distribution charts can be found below:
* The bar in red indicates where Applied Digital'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.
Applied Digital (XSWX:APLD) has a Current Ratio of 2.38 as of Feb. 2026. This is 217% above median its historical median of 0.75. Over the past decade, Applied Digital's Current Ratio has ranged from 0.18 to 5.93. According to the industry distribution chart, Applied Digital ranks #1050 out of 2866 companies in the Software industry, placing it in the top 36.6%.
Is Applied Digital's Current Ratio too high?
Applied Digital's current Current Ratio of 2.38 is 217% above median its 10-year median of 0.75. Over the past 10 years, this metric has ranged from a low of 0.18 to a high of 5.93. The Software industry median Current Ratio is 1.82. Applied Digital's value of 2.38 is 31.1% above this industry median. Based on the distribution chart, Applied Digital ranks #1050 out of 2866 companies in the Software industry, which is above the industry midpoint. Overall, Applied Digital has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does Applied Digital's Current Ratio compare to ?
According to the Software industry distribution chart, Applied Digital ranks #1050 out of 2866 companies for Current Ratio. This puts Applied Digital in the upper half of its industry. The industry median Current Ratio is 1.82. Applied Digital's value of 2.38 is 31.1% above this benchmark. Historically, Applied Digital's own Current Ratio has ranged from 0.18 to 5.93 over the past decade. While the company's 10-year median is 0.75 vs. the industry median of 1.82, Applied Digital 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 2,866 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. Applied Digital's current Current Ratio of 2.38 is 31.1% 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. Applied Digital's current Current Ratio is 2.38, which is 217% above median its own 10-year median of 0.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Digital stock overvalued right now?
Applied Digital (XSWX:APLD) has a current Current Ratio of 2.38. The stock's GF Value™ is CHF11.40, compared to a current price of CHF27.30 — trading 139.5% above its estimated fair value. The current Current Ratio is 2.38, which is 217% above median its 10-year median of 0.75 and 31.1% above the Software industry median of 1.82. Applied Digital's overall GF Score™ is 38/100 with 7 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 Applied Digital (XSWX:APLD), the current Current Ratio is 2.38 as of Feb. 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 Applied Digital (XSWX:APLD) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Digital stock appears to be overvalued.
The current stock price of CHF27.30 is trading 139.5% above its estimated GF Value™ of CHF11.40.
Key valuation signals for XSWX:APLD:
Current Ratio: 2.38 (217% above median its 10-year median of 0.75)
GF Value™: CHF11.40 vs. price of CHF27.30 (139.5% above fair value)
Industry Position: 31.1% above the Software median (#1050 of 2866)
No single metric tells the full story. See the XSWX:APLD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments: Data Center Hosting Business and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business, which operates data centers to provide energized space to crypto mining customers.
38GF Score
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