CE Current Ratio Analysis

The current ratio of 1.45x means the company holds $1.45 in short-term assets (like cash and inventory) for every $1 of short-term liabilities due within a year, showing it can cover upcoming obligations.

This sits at the 60th percentile among sector peers, above the sector median of 1.26x, indicating liquidity that is better than most comparable firms. The ratio increased 5.1% quarter-over-quarter from 1.38x, signaling a recent improvement in short-term financial flexibility, though the year-over-year change was not reported. A level above the median combined with a positive quarterly trend reduces near-term solvency risk, but the gain is only one quarter of data. This supports the NEUTRAL verdict — adequate liquidity reduces downside pressure without providing a catalyst for above-average returns.

Frequently Asked Questions