GWRENEUTRAL

GWRE Current Ratio Analysis

2.44x

Updated 168h ago·SEC filings & market data

Key Takeaway

The current ratio of 2.44x means GWRE has $2.44 in current assets (like cash and receivables) for every $1 of current liabilities (debts due within a year), indicating a strong short-term liquidity position.

Sector Performance

85th percentile

GWRE

2.44x

Sector Median

1.20x

Sector Avg

2.57x

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Deep Analysis

This is well above the sector median of 1.21x, placing GWRE in the 84th percentile among its peers. However, the year-over-year change and quarter-over-quarter change are both N/A, and the trend over the last eight quarters is also N/A, so no direction can be assessed. The combination of a high current ratio with an unknown trend suggests that while GWRE currently has ample liquidity to cover obligations, the lack of trend data creates uncertainty about whether this strength is stable or eroding. This metric supports the overall NEUTRAL verdict, as the favorable level is countered by the absence of any historical comparison to confirm sustainability.

Frequently Asked Questions

What does the Current Ratio tell investors about GWRE?

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 GWRE's closest peers by Current Ratio?

The closest peers by Current Ratio include: GEN (0.40x), USB (0.40x), CHTR (0.40x), DRI (0.39x), WFC (0.34x).

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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.