BIDUCAUTIOUS

BIDU Current Ratio Analysis

1.85x

Higher than 47% of Communication Services sector peers

Updated 193h ago·SEC filings & market data

Key Takeaway

The current ratio measures a company’s ability to pay short-term obligations with its short-term assets; a ratio of 1.85x means BIDU has $1.85 in current assets for every $1 of current liabilities.

Sector Performance

47th percentile

BIDU

1.85x

Sector Median

1.89x

Sector Avg

2.93x

Prior Period

1.76x(May 2026)

↑ Improving

📊

Deep Analysis

The current ratio measures a company’s ability to pay short-term obligations with its short-term assets; a ratio of 1.85x means BIDU has $1.85 in current assets for every $1 of current liabilities.

This sits just below the Communication Services sector median of 1.89x, placing BIDU in the 47th percentile among its peers. Year-over-year change is not available, but the quarter-over-quarter increase of +5.1% shows the ratio rose from 1.76x to 1.85x over the prior period. While the absolute level is slightly below the sector midpoint, the upward trend indicates improving short-term liquidity. This combination of a near-median level with a positive quarterly move reduces immediate liquidity risk but does not signal a strong safety buffer. The improving trend supports the overall CAUTIOUS verdict by suggesting BIDU is strengthening its position, though the ratio remains average rather than defensive.

Frequently Asked Questions

What does the Current Ratio tell investors about BIDU?

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 BIDU's Current Ratio compare to its sector?

BIDU's Current Ratio of 1.85x compares to a Communication Services sector median of 1.89x, placing it in the 47th percentile.

Who are BIDU's closest peers by Current Ratio?

The closest Communication Services peers by Current Ratio include: GOOG (1.92x), GOOGL (1.92x), YELP (1.74x), SPOT (2.06x), ZD (1.66x).

📚

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.