Sophia Holdings CoTSE:6942 +0.37%57 Quick Ratio is 1.34 as of Mar. 2026, which is 17% above its 10-year median of 1.15. GuruFocus rates TSE:6942 with a GF Score™ of 57/100 and a GF Value™ of 円1,117.23 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 2,868 Software companies, Sophia Holdings Co ranks worse than 61.68% on this metric.
Sophia Holdings Co has a quick ratio of 1.34. It generally indicates good short-term financial strength.
The historical rank and industry rank for Sophia Holdings Co's Quick Ratio or its related term are showing as below:
TSE:6942'
s Quick Ratio Range Over the Past 10 Years
Min: 0.83 Med: 1.15 Max: 1.38
Current: 1.34
During the past 13 years, Sophia Holdings Co's highest Quick Ratio was 1.38. The lowest was 0.83. And the median was 1.15.
TSE:6942's Quick Ratio is ranked worse than 61.68% of 2868
companies
in the Software industry
Industry Median: 1.705
vs TSE:6942: 1.34
Sophia Holdings Co (TSE:6942) 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.
Sophia Holdings Co Quick Ratio Related Terms
Sophia Holdings Co Quick Ratio Historical Data
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The historical data trend for Sophia Holdings Co'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.
TSE:6942 vs IBM, ACN, FISV: Quick Ratio Comparison
For the Information Technology Services subindustry, Sophia Holdings Co'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.
Sophia Holdings Co Quick Ratio vs Software Industry
For the Software industry and Technology sector, Sophia Holdings Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Sophia Holdings Co'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.
Sophia Holdings Co'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.
Sophia Holdings Co (TSE:6942) has a Quick Ratio of 1.34 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Sophia Holdings Co and its competitors. This is 17% above median its historical median of 1.15. Over the past decade, Sophia Holdings Co's Quick Ratio has ranged from 0.83 to 1.38. According to the industry distribution chart, Sophia Holdings Co ranks #1769 out of 2868 companies in the Software industry, placing it in the top 61.7%.
Is Sophia Holdings Co's Quick Ratio too high?
Sophia Holdings Co's current Quick Ratio of 1.34 is 17% above median its 10-year median of 1.15. Over the past 10 years, this metric has ranged from a low of 0.83 to a high of 1.38. The Software industry median Quick Ratio is 1.71. Sophia Holdings Co's value of 1.34 is 21.4% below this industry median. Based on the distribution chart, Sophia Holdings Co ranks #1769 out of 2868 companies in the Software industry, which is below the industry midpoint. Overall, Sophia Holdings Co has a GF Score™ of 57/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sophia Holdings Co's Quick Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Sophia Holdings Co ranks #1769 out of 2868 companies for Quick Ratio. This places Sophia Holdings Co in the lower half of its industry. The industry median Quick Ratio is 1.71. Sophia Holdings Co's value of 1.34 is 21.4% below this benchmark. Historically, Sophia Holdings Co's own Quick Ratio has ranged from 0.83 to 1.38 over the past decade. While the company's 10-year median is 1.15 vs. the industry median of 1.71, Sophia Holdings Co 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 1.71, based on 2,868 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. Sophia Holdings Co's current Quick Ratio of 1.34 is 21.4% 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 Sophia Holdings Co and its competitors. For the Software industry, the median Quick Ratio is 1.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sophia Holdings Co's current Quick Ratio is 1.34, which is 17% above median its own 10-year median of 1.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sophia Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Sophia Holdings Co (TSE:6942) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,117.23, compared to a current price of 円1,350.00 — trading 20.8% above its estimated fair value. The current Quick Ratio is 1.34, which is 17% above median its 10-year median of 1.15 and 21.4% below the Software industry median of 1.71. Sophia Holdings Co's overall GF Score™ is 57/100 with 6 warning signs 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 Sophia Holdings Co (TSE:6942), the current Quick Ratio is 1.34 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 Sophia Holdings Co (TSE:6942) Overvalued in 2026?
Based on GuruFocus' analysis, Sophia Holdings Co stock appears to be overvalued.
The current stock price of 円1,350.00 is trading 20.8% above its estimated GF Value™ of 円1,117.23.
GuruFocus considers Sophia Holdings Co to be Modestly Overvalued.
Key valuation signals for TSE:6942:
Quick Ratio: 1.34 (17% above median its 10-year median of 1.15)
GF Value™: 円1,117.23 vs. price of 円1,350.00 (20.8% above fair value)
Industry Position: 21.4% below the Software median (#1769 of 2868)
No single metric tells the full story. See the TSE:6942 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sophia Holdings Co Ltd is a Japan-based holding company. Through its subsidiaries, the company is engaged in the planning, design, development, business contracting and consultation of web services. It offers solutions across data center, hardware, software, contents and business categories. The group is also involved in the communication, healthcare, real estate, security and hosting businesses.
57GF Score
Get the complete analysis for TSE:6942
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