FAST Current Ratio Analysis

The current ratio measures a company’s ability to pay short-term obligations with its short-term assets; at 4.18x, FAST has $4.18 in current assets for every $1 of current liabilities, indicating strong liquidity.

This far exceeds the sector median of 1.20x and places FAST in the 95th percentile among sector peers, meaning it holds more liquidity than nearly all competitors. Trend data is limited: no year-over-year change is available, but the quarter-over-quarter change of -4.8% shows a decline from the prior quarter’s 4.39x. The combination of an extremely high current ratio (well above the sector norm) with a recent decrease suggests that while liquidity remains ample, the downward movement could hint at a shift toward less conservative working capital management. For a non-expert investor, the strong liquidity reduces near-term default risk, but the negative trend warrants monitoring. This metric supports the cautious verdict because the current ratio’s high level alone does not outweigh the uncertainty from the declining trend and the overall cautious stance on the stock.

Frequently Asked Questions

Closest Sector Peers