MODNCAUTIOUS

MODN Current Ratio Analysis

3.82x

Higher than 80% of Technology sector peers

Updated 2118h ago·SEC filings & market data

Key Takeaway

Model N’s current ratio of 3.82x means the company has $3.82 in short-term assets for every $1 of short-term liabilities, indicating strong ability to cover debts due within a year.

Sector Performance

80th percentile

MODN

3.82x

Sector Median

1.99x

Sector Avg

15.09x

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Deep Analysis

Model N’s current ratio of 3.82x means the company has $3.82 in short-term assets for every $1 of short-term liabilities, indicating strong ability to cover debts due within a year.

This is well above the sector median of 1.82x, placing the stock in the 79th percentile among technology peers. The metric shows no trend data: the year-over-year change, quarter-over-quarter change, and last-eight-quarter direction are all listed as N/A, so no historical movement can be assessed. Without a trend, the high level alone suggests the company holds ample liquidity, which can reduce short-term default risk but may also signal idle cash that could be deployed for growth. Because the current ratio is elevated but lacks trend context, it provides limited forward-looking insight. This metric does not contradict the overall CAUTIOUS verdict—though the ratio is a positive sign of liquidity, other factors behind the cautious view likely outweigh this single strength.

Frequently Asked Questions

What does the Current Ratio tell investors about MODN?

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 MODN's Current Ratio compare to its sector?

MODN's Current Ratio of 3.82x compares to a Technology sector median of 1.99x, placing it in the 80th percentile.

Who are MODN's closest peers by Current Ratio?

The closest Technology peers by Current Ratio include: ZS (1.86x), ADI (1.75x), APH (1.71x), BILL (1.66x), CRWD (1.53x).

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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.