Current Ratio

The current ratio measures a company’s ability to pay short-term obligations with its short-term assets; at 1.71x, CMI has $1.71 in current assets for every $1 of current liabilities, indicating it can comfortably cover near-term debts.

Compared to sector peers, CMI stands well above the sector median of 1.21x and ranks in the 71st percentile, meaning its liquidity is stronger than roughly 71% of similar companies. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 2.8%, and the limited data (only the two most recent quarters) prevents a clear longer trend assessment. Despite the above-median level, the small sequential decrease suggests a slight softening in liquidity, though it remains at a healthy threshold. This combination of a high current ratio with a modest quarterly drop implies limited immediate risk but warrants monitoring for further erosion. The metric supports the overall NEUTRAL verdict because the strong liquidity position is balanced by the early signs of a decreasing trend, leaving no clear bullish or bearish signal.

Frequently Asked Questions

Closest Sector Peers