Current Ratio
Higher than 8% of Financial Services sector peers
Updated 1078h ago
Sector Performance
8th percentileALLY
0.20x
Sector Median
0.79x
Sector Avg
4.50x
Deep Analysis
The current ratio measures a company’s ability to pay short-term obligations with its short-term assets; a ratio of 1.0x or higher is generally considered healthy.
At 0.20x, Ally Financial holds far less in current assets than current liabilities, indicating a very low liquidity buffer. This value sits well below the sector median of 0.81x, placing Ally in the 6th percentile among Financial Services peers. Trend data is not available, with year-over-year and quarter-over-quarter changes both listed as N/A, so no direction can be assessed. The extremely low ratio, combined with no trend information, points to a persistent liquidity risk that could increase vulnerability during cash crunches. This metric contradicts the overall NEUTRAL verdict by highlighting a pronounced weakness that typically warrants a more cautious view.
Frequently Asked Questions
What does the Current Ratio tell investors about ALLY?
Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.
How is the Current Ratio calculated?
Current Ratio is calculated as: Current Assets / Current Liabilities.
How does ALLY's Current Ratio compare to its sector?
ALLY's Current Ratio of 0.20x compares to a Financial Services sector median of 0.79x, placing it in the 8th percentile.
Who are ALLY's closest peers by Current Ratio?
The closest Financial Services peers by Current Ratio include: NU (0.83x), NAVI (0.75x), AMP (0.70x), SPGI (0.68x), ACGL (0.68x).
The Formula
Current Assets / Current Liabilities
Why It Matters
Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.
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0.20x
Sector Median
0.79x
Sector Avg
4.50x
How ALLY's Current Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.