CMINEUTRAL

CMI Current Ratio Analysis

1.71x

Updated 57h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.71x means CMI has $1.71 in current assets for every $1 of current liabilities, indicating it can cover short-term obligations comfortably.

Sector Performance

70th percentile

CMI

1.71x

Sector Median

1.26x

Sector Avg

2.61x

Prior Period

1.73x(Aug 2026)

↓ Declining

📊

Deep Analysis

The current ratio of 1.71x means CMI has $1.71 in current assets for every $1 of current liabilities, indicating it can cover short-term obligations comfortably.

Compared with sector peers, this sits well above the sector median of 1.25x and ranks in the 70th percentile. The metric has been stable over the last eight quarters, with the most recent value dipping 1.2% from the prior quarter; a year-over-year change is not available. The combination of a level above the peer median and a stable trend implies low short-term liquidity risk, but no improving cushion. This metric supports the overall neutral verdict because it shows adequate but not exceptional liquidity, consistent with a stock that is neither a clear buy nor sell on this factor.

Frequently Asked Questions

What does the Current Ratio tell investors about CMI?

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.

Who are CMI's closest peers by Current Ratio?

The closest peers by Current Ratio include: NWS (1.62x), ESTC (1.68x), DXCM (1.73x), GLW (1.81x), TEL (1.88x).

📚

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.