Current ratio: what it is and how to read it
It compares what the company has in the short term (cash, receivables, inventory) with what it must pay within a year. It measures whether it can meet its immediate payments.
How it is calculated
Current ratio = current assets / current liabilities.
How to read it
Above 1, it covers what falls due soon with what it has at hand; 1.5 to 2 is considered comfortable. Below 1 is not necessarily bad: supermarkets and restaurants get paid in cash and pay suppliers later.
Current ratio in the MeridIAn ranking
Among the 1,657 companies in the ranking with data, the median Current ratio is 1.42: half are below and half above. The lowest 25% are below 1.01 and the highest 25% above 2.13.
For example: NVIDIA, 4.59; Apple, 1.00; Alphabet, 2.72; Inditex, 1.16.
By sector
| Sector | Median | Companies with data |
|---|---|---|
| Basic Materials | 1.85 | 139 |
| Communication Services | 0.97 | 102 |
| Consumer Cyclical | 1.32 | 227 |
| Consumer Defensive | 1.14 | 123 |
| Energy | 1.25 | 99 |
| Healthcare | 1.86 | 209 |
| Industrials | 1.35 | 386 |
| Technology | 1.73 | 281 |
| Utilities | 0.94 | 91 |
Highest Current ratio
What to watch out for
A very high ratio can point to idle cash or inventory. It is not used for banks or insurers.
Related metrics
All metrics in the glossary → · Stocks by sector and country → · Ready-made screeners →
General information for educational purposes, not investment advice. Figures from the latest weekly analysis (Oct 8, 2026) with the latest available price.