LICAUTIOUS

LI Current Ratio Analysis

1.88x

Higher than 69% of Consumer Cyclical sector peers

Updated 275h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.88x means Li has $1.88 in current assets for every $1 of current liabilities, measuring its ability to cover short-term obligations.

Sector Performance

69th percentile

1.88x

Sector Median

1.45x

Sector Avg

3.36x

Prior Period

1.81x(May 2026)

↑ Improving

📊

Deep Analysis

The current ratio of 1.88x means Li has $1.88 in current assets for every $1 of current liabilities, measuring its ability to cover short-term obligations.

This sits above the consumer cyclical sector median of 1.44x, placing the company in the 69th percentile of peers, so liquidity is stronger than most comparable firms. The trend is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and no historical values beyond the current figure were provided. Because the level is solidly above the sector benchmark but the direction is unknown, the ratio offers a snapshot of adequate liquidity without evidence of improvement or deterioration. For investors, this reduces immediate short-term solvency risk, but the lack of trend data limits any forward-looking signal. This metric supports the overall CAUTIOUS verdict on Li, as a healthy current ratio alone does not offset other unresolved risks when no momentum can be confirmed.

Frequently Asked Questions

What does the Current Ratio tell investors about LI?

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 LI's Current Ratio compare to its sector?

LI's Current Ratio of 1.88x compares to a Consumer Cyclical sector median of 1.45x, placing it in the 69th percentile.

Who are LI's closest peers by Current Ratio?

The closest Consumer Cyclical peers by Current Ratio include: ANF (1.45x), URBN (1.48x), ROST (1.54x), AEO (1.55x), SE (1.58x).

📚

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.