CARGNEUTRAL

CARG Current Ratio Analysis

1.85x

Updated 647h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.85x means CARG has $1.85 of current assets for every $1 of current liabilities, showing it can cover short-term obligations without selling long-term assets.

Sector Performance

74th percentile

CARG

1.85x

Sector Median

1.26x

Sector Avg

2.60x

Prior Period

1.65x(Aug 2026)

↑ Improving

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Deep Analysis

The current ratio of 1.85x means CARG has $1.85 of current assets for every $1 of current liabilities, showing it can cover short-term obligations without selling long-term assets.

This sits above the sector median of 1.25x, placing CARG in the 74th percentile among sector peers. The year-over-year change is not available, but the quarter-over-quarter change is +12.1%, moving from 1.65x to 1.85x. A liquidity level above peers, combined with an improving quarterly trend, suggests reduced short-term financial stress and greater flexibility to fund operations. This strength tempers downside risk, yet it does not point to a clear upside catalyst. The metric supports the overall NEUTRAL verdict, as solid liquidity is a favorable backdrop but not a reason to become more bullish on the stock.

Frequently Asked Questions

What does the Current Ratio tell investors about CARG?

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.

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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.