AXP Current Ratio Analysis
Higher than 26% of Financial Services sector peers
Updated 3033h ago·SEC filings & market data
Key Takeaway
The current ratio measures a company’s ability to cover short-term obligations with its short-term assets; American Express’s reading of 0.35x means it has only $0.35 in current assets for every $1 of current liabilities.
Sector Performance
26th percentileAXP
0.35x
Sector Median
0.70x
Sector Avg
4.55x
Deep Analysis
The current ratio measures a company’s ability to cover short-term obligations with its short-term assets; American Express’s reading of 0.35x means it has only $0.35 in current assets for every $1 of current liabilities.
This is well below the Financial Services sector median of 0.79x, placing AXP in the 23rd percentile among its peers, indicating weaker short-term liquidity relative to most competitors. No trend data is available—year-over-year and quarter-over-quarter changes are N/A, and the last eight quarters show no reported direction, so no trajectory can be assessed. The combination of a very low current ratio and the absence of trend information suggests elevated liquidity risk, though for a financial services firm like American Express, which operates with significant debt and revolving credit lines, a sub-1.0 current ratio is not unusual. This metric does not contradict the overall NEUTRAL verdict but reinforces the need for caution regarding the company’s short-term financial flexibility.
Frequently Asked Questions
What does the Current Ratio tell investors about AXP?
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 AXP's Current Ratio compare to its sector?
AXP's Current Ratio of 0.35x compares to a Financial Services sector median of 0.70x, placing it in the 26th percentile.
Who are AXP's closest peers by Current Ratio?
The closest Financial Services peers by Current Ratio include: AMP (0.70x), ACGL (0.68x), NAVI (0.75x), JPM (0.62x), NU (0.83x).
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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0.35x
Sector Median
0.70x
Sector Avg
4.55x
How AXP's Current Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.