HOODNEUTRAL

HOOD Current Ratio Analysis

1.22x

Higher than 74% of Financial Services sector peers

Updated 132h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.22x means HOOD has $1.22 in current assets for every $1 in current liabilities, indicating it can cover short-term obligations over the next year.

Sector Performance

74th percentile

HOOD

1.22x

Sector Median

0.70x

Sector Avg

4.55x

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Deep Analysis

The current ratio of 1.22x means HOOD has $1.22 in current assets for every $1 in current liabilities, indicating it can cover short-term obligations over the next year.

This is higher than the Financial Services sector median of 0.72x, placing HOOD in the 71th percentile among peers, so its liquidity position is stronger than most comparable companies. The trend shows no available data: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and no historical values beyond the current 1.22x are provided. Because the level is above the sector median but the trend is unknown, the investment risk from this metric is limited only by uncertainty about whether that liquidity cushion is improving or deteriorating. This metric supports the overall NEUTRAL verdict by showing a sound liquidity position without evidence of momentum that would justify a more positive or negative stance.

Frequently Asked Questions

What does the Current Ratio tell investors about HOOD?

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.

How does HOOD's Current Ratio compare to its sector?

HOOD's Current Ratio of 1.22x compares to a Financial Services sector median of 0.70x, placing it in the 74th percentile.

Who are HOOD's closest peers by Current Ratio?

The closest Financial Services peers by Current Ratio include: AMP (0.70x), ACGL (0.68x), NAVI (0.75x), JPM (0.62x), NU (0.83x).

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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.