BHPCAUTIOUS

BHP Current Ratio Analysis

1.65x

Higher than 20% of Basic Materials sector peers

Updated 395h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.65x measures BHP’s ability to pay short-term obligations with short-term assets, so a value above 1x indicates adequate liquidity.

Sector Performance

20th percentile

BHP

1.65x

Sector Median

2.84x

Sector Avg

6.53x

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Deep Analysis

The current ratio of 1.65x measures BHP’s ability to pay short-term obligations with short-term assets, so a value above 1x indicates adequate liquidity.

Compared to sector peers, this sits well below the Basic Materials median of 2.84x and lands in the 29th percentile, meaning most competitors hold more liquidity per dollar of near-term liabilities. Trend data is unavailable: the year-over-year change is N/A and the quarter-over-quarter change is N/A, so no direction can be inferred from the single reported value. A low ratio relative to peers, combined with no observable trend, suggests that liquidity risk is above-average but stable at this snapshot. That risk is tempered by a ratio above 1x, showing BHP still covers current liabilities without relying on new financing. Overall, this metric supports the CAUTIOUS verdict because the liquidity position is weaker than most sector peers, even though it does not signal an immediate solvency problem.

Frequently Asked Questions

What does the Current Ratio tell investors about BHP?

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 BHP's Current Ratio compare to its sector?

BHP's Current Ratio of 1.65x compares to a Basic Materials sector median of 2.84x, placing it in the 20th percentile.

Who are BHP's closest peers by Current Ratio?

The closest Basic Materials peers by Current Ratio include: PAAS (2.84x), AG (2.73x), AEM (3.15x), RGLD (3.52x), ALB (2.07x).

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Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

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.