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. Severstal PAO's current ratio for the quarter that ended in Dec. 2023 was 2.04.
Severstal PAO has a current ratio of 2.04. It generally indicates good short-term financial strength.
The historical rank and industry rank for Severstal PAO's Current Ratio or its related term are showing as below:
XTER:RTS2's Current Ratio is not ranked *
in the Steel industry.
Industry Median: 1.63 * Ranked among companies with meaningful Current Ratio only.
Severstal PAO (XTER:RTS2) 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.
Severstal PAO Current Ratio Related Terms
Severstal PAO Current Ratio Historical Data
* Premium members only.
The historical data trend for Severstal PAO'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.
XTER:RTS2 vs NUE, STLD, RS: Current Ratio Comparison
For the Steel subindustry, Severstal PAO'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.
Severstal PAO Current Ratio vs Steel Industry
For the Steel industry and Basic Materials sector, Severstal PAO's Current Ratio distribution charts can be found below:
* The bar in red indicates where Severstal PAO'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.
Severstal PAO (XTER:RTS2) has a Current Ratio of 2.04 as of Dec. 2023.
Is Severstal PAO's Current Ratio too high?
Severstal PAO's current Current Ratio is 2.04. The Steel industry median Current Ratio is 1.63. Severstal PAO's value of 2.04 is 25.2% above this industry median. Overall, Severstal PAO has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Severstal PAO's Current Ratio compare to NUE and STLD?
Severstal PAO's Current Ratio of 2.04 can be compared against companies in the Steel industry. The industry median Current Ratio is 1.63. Severstal PAO's value of 2.04 is 25.2% above 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 Steel company?
The median Current Ratio among Steel companies is 1.63, based on 636 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. Severstal PAO's current Current Ratio of 2.04 is 25.2% 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 Steel industry, the median Current Ratio is 1.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Severstal PAO's current Current Ratio is 2.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Severstal PAO stock overvalued right now?
Severstal PAO (XTER:RTS2) has a current Current Ratio of 2.04. The current Current Ratio is 2.04 and 25.2% above the Steel industry median of 1.63. Severstal PAO's overall GF Score™ is 17/100. 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 Severstal PAO (XTER:RTS2), the current Current Ratio is 2.04 as of Dec. 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.
Severstal PAO is a vertically integrated steel and mining company in Russia. The company has two operating divisions: Severstal Resources and Severstal Russian Steel. Its core asset is the Cherepovets steel mill, which is located within easy access of the company's mining operations, the Baltic ports, and Russia's industrial heartland. The company produces iron ore pellets, iron ore concentrates, crushed stones, ferrite strontium powder, coking & steam coal, and coking coal concentrate. These materials are provided to six industry categories: construction and service processing, tube and pipe, oil and gas, machinery, autos, and others. Construction and service processing accounts for a majority of sales. Severstal generates most of its revenue in Russia.
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