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. PagSeguro Digital's current ratio for the quarter that ended in Dec. 2023 was 1.42.
PagSeguro Digital has a current ratio of 1.42. It generally indicates good short-term financial strength.
The historical rank and industry rank for PagSeguro Digital's Current Ratio or its related term are showing as below:
PAGS'
s Current Ratio Range Over the Past 10 Years
Min: 1.21 Med: 1.46 Max: 2.34
Current: 1.42
During the past 10 years, PagSeguro Digital's highest Current Ratio was 2.34. The lowest was 1.21. And the median was 1.46.
PAGS's Current Ratio is ranked worse than 61.69% of 2822
companies
in the Software industry
Industry Median: 1.79
vs PAGS: 1.42
PagSeguro Digital Current Ratio Historical Data
The historical data trend for PagSeguro Digital'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 PagSeguro Digital's Current Ratio
For the Software - Infrastructure subindustry, PagSeguro Digital'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.
PagSeguro Digital's Current Ratio Distribution in the Software Industry
For the Software industry and Technology sector, PagSeguro Digital's Current Ratio distribution charts can be found below:
* The bar in red indicates where PagSeguro Digital's Current Ratio falls into.
PagSeguro Digital 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.
PagSeguro Digital's Current Ratio for the fiscal year that ended in Dec. 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.
PagSeguro Digital (NYSE:PAGS) 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.
PagSeguro Digital Current Ratio Related Terms
Thank you for viewing the detailed overview of PagSeguro Digital's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
PagSeguro Digital (PagSeguro Digital) Business Description
PagSeguro Digital Ltd is a Brazilian-based company that acts as a provider of financial technology solutions focused primarily on Micro-Merchants, Small Companies and Medium-Sized Companies (SMEs), in Brazil. The company provides a range of solutions and tools such as cash-in and cash-out options and provides access to working capital to help to manage its cash flow. It delivers an end-to-end digital ecosystem to address day-to-day financial needs, including receiving and spending funds and managing and growing businesses for clients. The company also offers the Free PagSeguro Digital Account delivering Cash-In Solutions, Online and In-Person Payment Tools, Online Payment Tools; and Web Check Outs offer tokenization, handling of shipping information, and others.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
PAGS has been successfully added to your 