CRMNEUTRAL

Current Ratio

0.79x

Higher than 5% of Technology sector peers

Updated 533h ago

Sector Performance

5th percentile

CRM

0.79x

Sector Median

1.95x

Sector Avg

10.71x

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Deep Analysis

The current ratio measures a company's ability to pay short-term liabilities with short-term assets; Salesforce's ratio of 0.79x means it has $0.79 in current assets for every $1.00 of debt due within a year, indicating potential liquidity pressure.

This is well below the sector median of 1.82x, placing the company in the 4th percentile among technology peers, meaning 96% of competitors have a higher current ratio. Trend data is not available: both the year-over-year and quarter-over-quarter changes are stated as N/A, and no historical values beyond the single reported figure of 0.79x were provided. The low level alone points to elevated short-term financial risk, but without a trend, it is impossible to assess whether this is improving or worsening, limiting the ability to identify a clear opportunity or risk. This metric contradicts the overall NEUTRAL verdict because a current ratio far below both the sector median and near the bottom of peers typically suggests a negative factor for financial health. However, given the lack of trend context, the NEUTRAL stance may still be appropriate if other strengths offset this weakness.

Frequently Asked Questions

What does the Current Ratio tell investors about CRM?

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.

How does CRM's Current Ratio compare to its sector?

CRM's Current Ratio of 0.79x compares to a Technology sector median of 1.95x, placing it in the 5th percentile.

Who are CRM's closest peers by Current Ratio?

The closest Technology peers by Current Ratio include: U (1.95x), WIT (2.05x), GRAB (1.67x), ORCL (1.12x), SAP (1.07x).

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.

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CRM

0.79x

Sector Median

1.95x

Sector Avg

10.71x

How CRM's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.