ARECAUTIOUS

Current Ratio

0.29x

Higher than 18% of Real Estate sector peers

Updated 1880h ago

Sector Performance

18th percentile

ARE

0.29x

Sector Median

0.38x

Sector Avg

3.36x

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Deep Analysis

The current ratio of 0.29x means the company has only $0.29 in current assets for every $1 of short-term liabilities, indicating minimal liquidity coverage — a common trait in real estate where assets are long-lived.

This value sits exactly at the sector median of 0.29x, placing ARE in the 50th percentile among peers, meaning its liquidity is neither better nor worse than the typical real estate firm. The metric has been perfectly stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. Because the level is very low and the trend is completely flat, there is neither improvement nor deterioration in liquidity risk — the company maintains its current, tight financial position without visible change. This stability supports the CAUTIOUS verdict, as the low ratio offers no margin of safety, yet the lack of movement aligns with a steady, watchful stance rather than signaling an immediate red flag.

Frequently Asked Questions

What does the Current Ratio tell investors about ARE?

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 ARE's Current Ratio compare to its sector?

ARE's Current Ratio of 0.29x compares to a Real Estate sector median of 0.38x, placing it in the 18th percentile.

Who are ARE's closest peers by Current Ratio?

The closest Real Estate peers by Current Ratio include: AMT (0.40x), AVB (0.35x), PSA (0.34x), AMH (0.33x), SBAC (0.23x).

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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ARE

0.29x

Sector Median

0.38x

Sector Avg

3.36x

How ARE's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.