EMR Current Ratio Analysis

The current ratio measures a company's ability to cover short-term obligations with short-term assets; a value of 0.90x means EMR has $0.90 in current assets for every $1.00 of current liabilities, indicating it does not fully cover near-term debts.

Compared to sector peers, this sits well below the sector median of 1.25x, placing EMR at the 25th percentile, so roughly three-quarters of peers have stronger liquidity. The year-over-year change is N/A, and the quarter-over-quarter change is +3.4%, with the most recent values at 0.90x versus 0.87x previously; the 8-quarter trend direction is N/A. The combination of a sub-1.0 ratio and only a modest sequential improvement suggests persistent tight liquidity, though the uptick offers a small buffer against further deterioration. For investment risk, this is a caution flag: the company has limited cushion for unexpected cash needs, but the slight QoQ gain hints at stabilization rather than a sharp decline. This metric contradicts a NEUTRAL verdict by leaning toward the negative side, as the liquidity position is weak relative to peers despite the recent improvement.

Frequently Asked Questions

Closest Sector Peers