Tera SoftwareNSE:TERASOFT +0.10%72 Quick Ratio is 1.69 as of Mar. 2026, which is 9% above its 10-year median of 1.55. GuruFocus rates NSE:TERASOFT with a GF Score™ of 72/100 and a GF Value™ of ₹325.37 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 2,865 Software companies, Tera Software ranks worse than 50.3% on this metric.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Tera Software's quick ratio for the quarter that ended in Mar. 2026 was 1.69.
Tera Software has a quick ratio of 1.69. It generally indicates good short-term financial strength.
The historical rank and industry rank for Tera Software's Quick Ratio or its related term are showing as below:
NSE:TERASOFT'
s Quick Ratio Range Over the Past 10 Years
Min: 1.34 Med: 1.55 Max: 2.01
Current: 1.69
During the past 13 years, Tera Software's highest Quick Ratio was 2.01. The lowest was 1.34. And the median was 1.55.
NSE:TERASOFT's Quick Ratio is ranked worse than 50.3% of 2865
companies
in the Software industry
Industry Median: 1.7
vs NSE:TERASOFT: 1.69
Tera Software (NSE:TERASOFT) 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.
Tera Software Quick Ratio Related Terms
Tera Software Quick Ratio Historical Data
* Premium members only.
The historical data trend for Tera Software'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.
NSE:TERASOFT vs IBM, ACN, FISV: Quick Ratio Comparison
For the Information Technology Services subindustry, Tera Software'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.
Tera Software Quick Ratio vs Software Industry
For the Software industry and Technology sector, Tera Software's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Tera Software'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.
Tera Software'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.
Tera Software (NSE:TERASOFT) has a Quick Ratio of 1.69 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Tera Software and its competitors. This is near median its historical median of 1.55. Over the past decade, Tera Software's Quick Ratio has ranged from 1.34 to 2.01. According to the industry distribution chart, Tera Software ranks #1441 out of 2865 companies in the Software industry, placing it in the top 50.3%.
Is Tera Software's Quick Ratio too high?
Tera Software's current Quick Ratio of 1.69 is near median its 10-year median of 1.55. Over the past 10 years, this metric has ranged from a low of 1.34 to a high of 2.01. The Software industry median Quick Ratio is 1.70. Tera Software's value of 1.69 is 0.6% below this industry median. Based on the distribution chart, Tera Software ranks #1441 out of 2865 companies in the Software industry, which is below the industry midpoint. Overall, Tera Software has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tera Software's Quick Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Tera Software ranks #1441 out of 2865 companies for Quick Ratio. This places Tera Software in the lower half of its industry. The industry median Quick Ratio is 1.70. Tera Software's value of 1.69 is 0.6% below this benchmark. Historically, Tera Software's own Quick Ratio has ranged from 1.34 to 2.01 over the past decade. While the company's 10-year median is 1.55 vs. the industry median of 1.70, Tera Software 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. Tera Software's current Quick Ratio of 1.69 is 0.6% 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 Tera Software 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. Tera Software's current Quick Ratio is 1.69, which is near median its own 10-year median of 1.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tera Software stock overvalued right now?
Based on GuruFocus' analysis, Tera Software (NSE:TERASOFT) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹325.37, compared to a current price of ₹400.05 — trading 23% above its estimated fair value. The current Quick Ratio is 1.69, which is near median its 10-year median of 1.55 and 0.6% below the Software industry median of 1.70. Tera Software's overall GF Score™ is 72/100 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 Tera Software (NSE:TERASOFT), the current Quick Ratio is 1.69 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 Tera Software (NSE:TERASOFT) Overvalued in 2026?
Based on GuruFocus' analysis, Tera Software stock appears to be overvalued.
The current stock price of ₹400.05 is trading 23% above its estimated GF Value™ of ₹325.37.
GuruFocus considers Tera Software to be Modestly Overvalued.
Key valuation signals for NSE:TERASOFT:
Quick Ratio: 1.69 (near median its 10-year median of 1.55)
GF Value™: ₹325.37 vs. price of ₹400.05 (23% above fair value)
Industry Position: 0.6% below the Software median (#1441 of 2865)
No single metric tells the full story. See the NSE:TERASOFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tera Software Ltd is engaged in providing IT & Integrated services. The company provides IT and operational solutions such as fiber network infrastructure and services; installation, maintenance, and support services, as well as wireless and wired connectivity; digitization of land records; sales tax automation; and solutions for the automation and management of road transport and vehicle registration authorities, among others. The company's operating business segments include the Technical Division, which generates maximum revenue, Integrated Solutions, Projects Division, and Others.
72GF Score
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