NETCAUTIOUS

NET Current Ratio Analysis

1.96x

Higher than 51% of Technology sector peers

Updated 72h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.96x means Cloudflare has $1.96 in short-term assets (like cash and receivables) for every $1 of short-term liabilities due within a year, indicating a comfortable ability to cover upcoming obligations.

Sector Performance

51th percentile

NET

1.96x

Sector Median

1.96x

Sector Avg

10.67x

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Deep Analysis

The current ratio of 1.96x means Cloudflare has $1.96 in short-term assets (like cash and receivables) for every $1 of short-term liabilities due within a year, indicating a comfortable ability to cover upcoming obligations.

This sits just above the sector median of 1.95x and places the company in the 51st percentile among technology peers, essentially in line with the typical peer. However, the trend direction, year-over-year change, and quarter-over-quarter change are all listed as N/A because only one historical value is available, so no movement can be assessed. With a level that is virtually neutral versus peers and no trend data to suggest improvement or deterioration, the metric offers no clear signal of rising risk or opportunity by itself. This neutral reading neither supports nor contradicts the overall CAUTIOUS verdict, which likely stems from other factors such as growth sustainability or valuation concerns rather than liquidity.

Frequently Asked Questions

What does the Current Ratio tell investors about NET?

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 NET's Current Ratio compare to its sector?

NET's Current Ratio of 1.96x compares to a Technology sector median of 1.96x, placing it in the 51th percentile.

Who are NET's closest peers by Current Ratio?

The closest Technology peers by Current Ratio include: ORCL (1.12x), PCTY (1.08x), UBER (1.07x), SAP (1.07x), AAPL (1.07x).

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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NET

1.96x

Sector Median

1.96x

Sector Avg

10.67x

How NET's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.