TransAltaTAC 51 Current Ratio is 0.76 as of Mar. 2026, which is 34% below its 10-year median of 1.15. GuruFocus rates TAC with a GF Score™ of 51/100 and a GF Value™ of $6.86 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 445 Utilities - Independent Power Producers companies, TransAlta ranks worse than 77.98% on this metric.
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. TransAlta's current ratio for the quarter that ended in Mar. 2026 was 0.76.
TransAlta has a current ratio of 0.76. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If TransAlta 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 TransAlta's Current Ratio or its related term are showing as below:
TAC'
s Current Ratio Range Over the Past 10 Years
Min: 0.69 Med: 1.15 Max: 2.03
Current: 0.76
During the past 13 years, TransAlta's highest Current Ratio was 2.03. The lowest was 0.69. And the median was 1.15.
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.
TransAlta Current Ratio Related Terms
TransAlta Current Ratio Historical Data
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The historical data trend for TransAlta'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.
For the Utilities - Independent Power Producers subindustry, TransAlta'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.
TransAlta Current Ratio vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, TransAlta's Current Ratio distribution charts can be found below:
* The bar in red indicates where TransAlta's Current Ratio falls into.
* 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.
TransAlta (TAC) has a Current Ratio of 0.76 as of Mar. 2026. This is 34% below median its historical median of 1.15. Over the past decade, TransAlta's Current Ratio has ranged from 0.69 to 2.03. According to the industry distribution chart, TransAlta ranks #347 out of 445 companies in the Utilities - Independent Power Producers industry, placing it in the top 78%.
Is TransAlta's Current Ratio too high?
TransAlta's current Current Ratio of 0.76 is 34% below median its 10-year median of 1.15. Over the past 10 years, this metric has ranged from a low of 0.69 to a high of 2.03. The Utilities - Independent Power Producers industry median Current Ratio is 1.36. TransAlta's value of 0.76 is 44.1% below this industry median. Based on the distribution chart, TransAlta ranks #347 out of 445 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. Overall, TransAlta has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TransAlta's Current Ratio compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, TransAlta ranks #347 out of 445 companies for Current Ratio. This places TransAlta in the lower half of its industry. The industry median Current Ratio is 1.36. TransAlta's value of 0.76 is 44.1% below this benchmark. Historically, TransAlta's own Current Ratio has ranged from 0.69 to 2.03 over the past decade. While the company's 10-year median is 1.15 vs. the industry median of 1.36, TransAlta 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 Current Ratio for an Utilities - Independent Power Producers company?
The median Current Ratio among Utilities - Independent Power Producers companies is 1.36, based on 445 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransAlta's current Current Ratio of 0.76 is 44.1% 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Utilities - Independent Power Producers industry, the median Current Ratio is 1.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransAlta's current Current Ratio is 0.76, which is 34% below 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 TransAlta stock overvalued right now?
Based on GuruFocus' analysis, TransAlta (TAC) is currently considered Significantly Overvalued. The stock's GF Value™ is $6.86, compared to a current price of $13.69 — trading 99.6% above its estimated fair value. The current Current Ratio is 0.76, which is 34% below median its 10-year median of 1.15 and 44.1% below the Utilities - Independent Power Producers industry median of 1.36. TransAlta's overall GF Score™ is 51/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For TransAlta (TAC), the current Current Ratio is 0.76 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 TransAlta (TAC) Overvalued in 2026?
Based on GuruFocus' analysis, TransAlta stock appears to be overvalued.
The current stock price of $13.69 is trading 99.6% above its estimated GF Value™ of $6.86.
GuruFocus considers TransAlta to be Significantly Overvalued.
Key valuation signals for TAC:
Current Ratio: 0.76 (34% below median its 10-year median of 1.15)
GF Value™: $6.86 vs. price of $13.69 (99.6% above fair value)
Industry Position: 44.1% below the Utilities - Independent Power Producers median (#347 of 445)
No single metric tells the full story. See the TAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TransAlta Corp is an independent power producer based in Alberta, Canada. The company operates a diverse electrical power generation assets in Canada, the United States, and Western Australia. The company has reportable segments namely, Hydro, Wind & Solar, Gas, Energy Transition segment and Corporate Segment. The company generates the majority of its revenue from the gas segment.
51GF Score
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