DOWNEUTRAL

DOW Current Ratio Analysis

1.75x

Updated 57h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.75x means DOW has $1.75 in current assets for every $1 of current liabilities, measuring its ability to cover short-term obligations.

Sector Performance

72th percentile

DOW

1.75x

Sector Median

1.26x

Sector Avg

2.61x

Prior Period

1.85x(Jul 2026)

↓ Declining

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Deep Analysis

The current ratio of 1.75x means DOW has $1.75 in current assets for every $1 of current liabilities, measuring its ability to cover short-term obligations.

This sits above the sector median of 1.25x, placing the company at the 72nd percentile among peers, so liquidity is stronger than most competitors. The year-over-year change is N/A, but the quarter-over-quarter change shows a decline of -5.4% — with historical values of 1.75x (most recent) and 1.85x prior, the metric is confirmed to be falling. The combination of an above-median level with a recent downward move suggests current liquidity remains adequate but is eroding, which introduces modest short-term risk if the trend continues. This does not contradict the overall NEUTRAL verdict: the healthy cushion supports stability, while the negative trajectory tempers any upside conviction.

Frequently Asked Questions

What does the Current Ratio tell investors about DOW?

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 DOW'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).

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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.