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. ARB IOT Group's current ratio for the quarter that ended in Dec. 2023 was 0.44.
ARB IOT Group has a current ratio of 0.44. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If ARB IOT Group has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for ARB IOT Group's Current Ratio or its related term are showing as below:
ARBB'
s Current Ratio Range Over the Past 10 Years
Min: 0.44 Med: 1.68 Max: 8.4
Current: 0.44
During the past 3 years, ARB IOT Group's highest Current Ratio was 8.40. The lowest was 0.44. And the median was 1.68.
ARBB's Current Ratio is ranked worse than 92.07% of 2837
companies
in the Software industry
Industry Median: 1.78
vs ARBB: 0.44
ARB IOT Group Current Ratio Historical Data
The historical data trend for ARB IOT Group'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.
Competitive Comparison of ARB IOT Group's Current Ratio
For the Information Technology Services subindustry, ARB IOT Group'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.
ARB IOT Group's Current Ratio Distribution in the Software Industry
For the Software industry and Technology sector, ARB IOT Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where ARB IOT Group's Current Ratio falls into.
ARB IOT Group Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
ARB IOT Group's Current Ratio for the fiscal year that ended in Jun. 2023 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.
ARB IOT Group (NAS:ARBB) 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.
ARB IOT Group Current Ratio Related Terms
Thank you for viewing the detailed overview of ARB IOT Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
ARB IOT Group (ARB IOT Group) Business Description
ARB IOT Group Ltd is engaged in provision of hardware and software of Internet of Things solutions to meet customers' demand in four business lines, which are IoT Smart Home and Buildings, IoT Smart Agriculture, IoT System Development, and IoT Gadget Distribution. The company delivers holistic solutions with full turnkey deployment from designing, installation, testing, pre-commissioning, and commissioning of various IoT systems and devices as well as integration of automated systems, including installation of wire and wireless and mechatronic works. The company has two operating segments: Internet of Things ('IoT') and Investment holding and others. It earns its maximum profit from the Internet of Things segment.
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