Firstsource SolutionsNSE:FSL -0.23%81 Quick Ratio is 0.79 as of Mar. 2026, which is 11% below its 10-year median of 0.89. GuruFocus rates NSE:FSL with a GF Score™ of 81/100 and a GF Value™ of ₹370.94 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,865 Software companies, Firstsource Solutions ranks worse than 84.08% on this metric.
Firstsource Solutions has a quick ratio of 0.79. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Firstsource Solutions's Quick Ratio or its related term are showing as below:
NSE:FSL'
s Quick Ratio Range Over the Past 10 Years
Min: 0.79 Med: 0.89 Max: 0.95
Current: 0.79
During the past 13 years, Firstsource Solutions's highest Quick Ratio was 0.95. The lowest was 0.79. And the median was 0.89.
NSE:FSL's Quick Ratio is ranked worse than 84.08% of 2865
companies
in the Software industry
Industry Median: 1.7
vs NSE:FSL: 0.79
Firstsource Solutions (NSE:FSL) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Firstsource Solutions Quick Ratio Related Terms
Firstsource Solutions Quick Ratio Historical Data
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The historical data trend for Firstsource Solutions's Quick 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, Firstsource Solutions's Quick Ratio, along with its competitors' market caps and Quick 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.
Firstsource Solutions Quick Ratio vs Software Industry
For the Software industry and Technology sector, Firstsource Solutions's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Firstsource Solutions's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Firstsource Solutions's Quick Ratio for the fiscal year that ended in Mar. 2026 is calculated as
* 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.
Firstsource Solutions (NSE:FSL) has a Quick Ratio of 0.79 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Firstsource Solutions and its competitors. This is 11% below median its historical median of 0.89. Over the past decade, Firstsource Solutions' Quick Ratio has ranged from 0.79 to 0.95. According to the industry distribution chart, Firstsource Solutions ranks #2409 out of 2865 companies in the Software industry, placing it in the top 84.1%.
Is Firstsource Solutions' Quick Ratio too high?
Firstsource Solutions' current Quick Ratio of 0.79 is 11% below median its 10-year median of 0.89. Over the past 10 years, this metric has ranged from a low of 0.79 to a high of 0.95. The Software industry median Quick Ratio is 1.70. Firstsource Solutions' value of 0.79 is 53.5% below this industry median. Based on the distribution chart, Firstsource Solutions ranks #2409 out of 2865 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Firstsource Solutions has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Firstsource Solutions' Quick Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Firstsource Solutions ranks #2409 out of 2865 companies for Quick Ratio. This places Firstsource Solutions in the lower half of its industry. The industry median Quick Ratio is 1.70. Firstsource Solutions' value of 0.79 is 53.5% below this benchmark. Historically, Firstsource Solutions' own Quick Ratio has ranged from 0.79 to 0.95 over the past decade. While the company's 10-year median is 0.89 vs. the industry median of 1.70, Firstsource Solutions 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 Quick Ratio for a Software company?
The median Quick Ratio among Software companies is 1.70, based on 2,865 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Firstsource Solutions's current Quick Ratio of 0.79 is 53.5% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Firstsource Solutions and its competitors. For the Software industry, the median Quick Ratio is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Firstsource Solutions's current Quick Ratio is 0.79, which is 11% below median its own 10-year median of 0.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Firstsource Solutions stock overvalued right now?
Based on GuruFocus' analysis, Firstsource Solutions (NSE:FSL) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹370.94, compared to a current price of ₹243.45 — trading 34.4% below its estimated fair value. The current Quick Ratio is 0.79, which is 11% below median its 10-year median of 0.89 and 53.5% below the Software industry median of 1.70. Firstsource Solutions' overall GF Score™ is 81/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Firstsource Solutions (NSE:FSL), the current Quick Ratio is 0.79 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 Firstsource Solutions (NSE:FSL) Overvalued in 2026?
Based on GuruFocus' analysis, Firstsource Solutions stock appears to be undervalued.
The current stock price of ₹243.45 is trading 34.4% below its estimated GF Value™ of ₹370.94.
GuruFocus considers Firstsource Solutions to be Significantly Undervalued.
Key valuation signals for NSE:FSL:
Quick Ratio: 0.79 (11% below median its 10-year median of 0.89)
GF Value™: ₹370.94 vs. price of ₹243.45 (34.4% below fair value)
Industry Position: 53.5% below the Software median (#2409 of 2865)
No single metric tells the full story. See the NSE:FSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Firstsource Solutions Ltd is engaged in the business of providing customer management services like contact centers, transaction processing, and debt collection services. The company's business segment includes Banking and Financial Services, Healthcare, Communication, Media and Technology, and Diverse Industries. It generates maximum revenue from the Banking and Financial Services segment. Geographically, it derives a majority of its revenue from the United States of America.
81GF Score
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