Current Ratio
Updated 464h ago
Sector Performance
31th percentileMA
0.98x
Sector Median
1.20x
Sector Avg
2.57x
Deep Analysis
The current ratio compares a company’s current assets to its current liabilities, measuring its ability to cover short-term obligations.
Mastercard’s current ratio of 0.98x means it has $0.98 in current assets for every $1.00 in short-term debt, indicating a slight deficit. Among sector peers, the median current ratio is 1.21x, and Mastercard ranks at the 31st percentile, meaning about 69% of peers have a higher current ratio. The year-over-year change is not available, but the quarter-over-quarter change is -4.9%, with the ratio declining from 1.03x to 0.98x over the two most recent data points. A current ratio below 1.0 combined with a declining trend points to increasing liquidity risk, though the decline is moderate. This metric introduces a negative consideration that does not directly contradict the overall NEUTRAL verdict, as the single metric alone does not override the broader assessment.
Frequently Asked Questions
What does the Current Ratio tell investors about MA?
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 MA'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.
Master MA's Valuation
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0.98x
Sector Median
1.20x
Sector Avg
2.57x
How MA's Current Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.