AMBA Current Ratio Analysis
Higher than 59% of Technology sector peers
Updated 2123h ago·SEC filings & market data
Key Takeaway
Ambarella’s current ratio of 2.43x means the company has $2.43 in current assets (cash, receivables, inventory) for every $1 of short-term liabilities, indicating it can comfortably cover its near-term obligations.
Sector Performance
59th percentileAMBA
2.43x
Sector Median
1.99x
Sector Avg
15.09x
Prior Period
2.31x(May 2026)
Deep Analysis
Ambarella’s current ratio of 2.43x means the company has $2.43 in current assets (cash, receivables, inventory) for every $1 of short-term liabilities, indicating it can comfortably cover its near-term obligations.
This is above the technology sector median of 1.95x, placing Ambarella in the 61st percentile among its peers — a moderately stronger liquidity position than most. The trend data for this metric is not available: the year-over-year change, quarter-over-quarter change, and last eight quarters are all marked N/A, so no directional movement can be assessed. Without a trend, the analysis rests solely on the current level. A high current ratio above the sector median suggests lower short-term default risk, but it can also imply inefficient use of assets if cash is sitting idle. This neutral liquidity picture neither supports nor contradicts the overall NEUTRAL verdict — it aligns with the balanced view that no strong bullish or bearish signal emerges from this metric alone.
Frequently Asked Questions
What does the Current Ratio tell investors about AMBA?
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 AMBA's Current Ratio compare to its sector?
AMBA's Current Ratio of 2.43x compares to a Technology sector median of 1.99x, placing it in the 59th percentile.
Who are AMBA's closest peers by Current Ratio?
The closest Technology peers by Current Ratio include: SMAR (1.51x), ASML (1.36x), ACN (1.34x), BRZE (1.24x), BR (1.24x).
Learn More About Current Ratio
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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2.43x
Sector Median
1.99x
Sector Avg
15.09x
How AMBA's Current Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.