Current Ratio

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.

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