CACC Current Ratio Analysis

The current ratio measures a company’s ability to cover short-term obligations with short-term assets; at 20.57x, CACC holds roughly $20.57 of current assets for every $1 of current liabilities, indicating very strong short-term liquidity.

This level far exceeds the sector median of 0.75x and places CACC in the 95th percentile among its financial services peers, meaning nearly all comparable firms have lower liquidity coverage. The trend data is not available: both the year-over-year change and quarter-over-quarter change are N/A, so no direction can be inferred from the single reported value of 20.57x. Without a trend, the high level alone suggests low near-term default risk, but for a financial services firm it may also imply capital sitting idle rather than being deployed for lending or growth. This combination of a high current ratio and absent trend data offers a short-term safety buffer, yet it does not address longer-term profitability or asset quality concerns. This metric contradicts the overall CAUTIOUS verdict, because the liquidity position itself points to limited immediate solvency risk rather than a reason for caution.

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