DDOGNEUTRAL

DDOG Current Ratio Analysis

3.20x

Updated 830h ago·SEC filings & market data

Key Takeaway

The current ratio of 3.20x means DDOG holds $3.20 in short-term assets for every $1.00 of short-term liabilities, signaling ample capacity to settle obligations due within a year.

Sector Performance

89th percentile

DDOG

3.20x

Sector Median

1.26x

Sector Avg

2.60x

Prior Period

3.40x(Aug 2026)

↓ Declining
📊

Deep Analysis

The current ratio of 3.20x means DDOG holds $3.20 in short-term assets for every $1.00 of short-term liabilities, signaling ample capacity to settle obligations due within a year.

At the 89th percentile, DDOG’s liquidity far surpasses the sector median of 1.26x, giving it a wider safety margin than most peers. The ratio fell 5.9% quarter-over-quarter from 3.40x to 3.20x, marking the most recent step in a liquidity buffer that has contracted but remains elevated in absolute terms. A high level paired with a moderate decline implies low insolvency risk, though the trajectory tempers the balance-sheet advantage. This supports the NEUTRAL verdict, as the strong current ratio confirms stability but offers no momentum for upside.

Frequently Asked Questions

What does the Current Ratio tell investors about DDOG?

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.

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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DDOG

3.20x

Sector Median

1.26x

Sector Avg

2.60x

How DDOG's Current Ratio compares to sector peers.

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