Current Ratio

The current ratio measures a company's ability to pay short-term liabilities with short-term assets; a value below 1.0x, like Arch Capital's 0.68x, indicates current liabilities exceed current assets, which can signal liquidity pressure.

Arch Capital's ratio sits above the Financial Services sector median of 0.62x, placing it in the 55th percentile among peers. Over the past eight quarters, the trend is decreasing: the ratio fell from 1.25x to 0.68x roughly three quarters ago, though year-over-year and quarter-over-quarter changes have been flat at +0.0%. The combination of a below-1.0x level and a decreasing trend suggests elevated short-term liquidity risk, as the company now holds fewer current assets relative to current obligations than it did historically. This risk profile partially contradicts the overall NEUTRAL verdict, because a weakening liquidity metric often warrants caution, but the sector-relative position near the median tempers that concern.

Frequently Asked Questions

Closest Sector Peers