Current Ratio
Updated 1928h ago
Sector Performance
20th percentileIBM
0.80x
Sector Median
1.20x
Sector Avg
2.57x
Deep Analysis
The current ratio of 0.80x means that for every $1 of short-term liabilities, IBM has only $0.80 in current assets available to pay them, indicating potential liquidity strain.
Compared to sector peers, the ratio is well below the median of 1.21x, placing IBM in the 19th percentile — meaning 81% of peers have a higher current ratio. The trend data is not available: both the year-over-year and quarter-over-quarter changes are listed as N/A, and no historical values are provided for the last eight quarters. Without a trend, the low absolute level alone signals ongoing liquidity risk, as a ratio under 1.0x historically suggests difficulty meeting near-term obligations. This metric contradicts the overall NEUTRAL verdict because the weak liquidity position introduces a downside risk that a neutral view typically does not capture.
Frequently Asked Questions
What does the Current Ratio tell investors about IBM?
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 IBM's closest peers by Current Ratio?
The closest peers by Current Ratio include: SPG (0.41x), CHTR (0.40x), USB (0.40x), GEN (0.40x), DRI (0.39x).
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.
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0.80x
Sector Median
1.20x
Sector Avg
2.57x
How IBM's Current Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.