HMCCAUTIOUS

HMC Current Ratio Analysis

1.29x

Updated 12h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.28x means HMC has $1.28 in current assets for every $1 of current liabilities, indicating it can cover short-term obligations but with a slim buffer.

Sector Performance

52th percentile

HMC

1.29x

Sector Median

1.26x

Sector Avg

2.58x

Prior Period

1.28x(Aug 2026)

→ Stable

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Deep Analysis

The current ratio of 1.28x means HMC has $1.28 in current assets for every $1 of current liabilities, indicating it can cover short-term obligations but with a slim buffer.

Compared to sector peers, this sits below the Consumer Cyclical median of 1.41x, placing HMC at the 42nd percentile among its peers. Trend data is unavailable: both the year-over-year change and quarter-over-quarter change are reported as N/A, so no directional signal exists. The combination of a level slightly under the sector median and an absence of trend information leaves liquidity risk moderately elevated but not alarming. This metric supports the overall CAUTIOUS verdict because the ratio is below typical industry coverage and offers no evidence of improving strength.

Frequently Asked Questions

What does the Current Ratio tell investors about HMC?

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 HMC's closest peers by Current Ratio?

The closest peers by Current Ratio include: MTB (0.32x), ESS (0.31x), DRI (0.31x), TRNO (0.31x), CINF (0.29x).

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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.