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. WeCommerce Holdings's current ratio for the quarter that ended in Dec. 2022 was 0.90.
WeCommerce Holdings has a current ratio of 0.90. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If WeCommerce Holdings 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 WeCommerce Holdings's Current Ratio or its related term are showing as below:
TSXV:WE's Current Ratio is not ranked *
in the Software industry.
Industry Median: 1.77 * Ranked among companies with meaningful Current Ratio only.
WeCommerce Holdings Current Ratio Historical Data
The historical data trend for WeCommerce Holdings'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 WeCommerce Holdings's Current Ratio
For the Software - Application subindustry, WeCommerce Holdings'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.
WeCommerce Holdings's Current Ratio Distribution in the Software Industry
For the Software industry and Technology sector, WeCommerce Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where WeCommerce Holdings's Current Ratio falls into.
WeCommerce Holdings 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.
WeCommerce Holdings's Current Ratio for the fiscal year that ended in Dec. 2022 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.
WeCommerce Holdings (TSXV:WE) 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.
WeCommerce Holdings Current Ratio Related Terms
Thank you for viewing the detailed overview of WeCommerce Holdings's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
WeCommerce Holdings (TSXV:WE) Business Description
WeCommerce Holdings Ltd is a holding company that owns a family of companies and brands in the Shopify partner ecosystem, including Pixel Union, Out of the Sandbox, Yopify, SuppleApps, Rehash, Stamped and Foursixty. The company's primary focus is to build, grow and acquire businesses that serve the Shopify Partner ecosystem. These businesses consist largely of Software as a Service, Digital Goods and Services businesses. Generally, these businesses build Apps and Themes and run Agencies that support Shopify merchants. The company targets businesses within the Shopify ecosystem due to its confidence in the Shopify platform, the fragmented nature of the ecosystem and the attractive economics that the businesses generally exhibit. Its segments include Themes, Apps and Agency.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TSXV:WE has been successfully added to your 