PAYCNEUTRAL

PAYC Current Ratio Analysis

1.07x

Updated 129h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.07x shows that for every $1 of short-term liabilities, the company has $1.07 in short-term assets, indicating a narrow but positive liquidity cushion.

Sector Performance

36th percentile

PAYC

1.07x

Sector Median

1.26x

Sector Avg

2.61x

Prior Period

1.08x(Aug 2026)

→ Stable

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Deep Analysis

The current ratio of 1.07x shows that for every $1 of short-term liabilities, the company has $1.07 in short-term assets, indicating a narrow but positive liquidity cushion.

This sits below the sector median of 1.25x, placing the company at the 37th percentile among sector peers, meaning most comparable firms hold a larger buffer. The metric’s long-term trend is not available, but the quarter-over-quarter change is -0.9%, while the year-over-year change is also N/A. The combination of a level below the median and a slight quarterly decline points to modest liquidity pressure, yet the absence of a longer trend limits any strong risk signal. This does not contradict the overall NEUTRAL verdict, as the ratio remains above 1.0x and the short-term deterioration is small. Overall, this metric supports a neutral stance rather than a clearly positive or negative one.

Frequently Asked Questions

What does the Current Ratio tell investors about PAYC?

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 PAYC's closest peers by Current Ratio?

The closest peers by Current Ratio include: NWS (1.62x), ESTC (1.68x), DXCM (1.73x), GLW (1.81x), TEL (1.88x).

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Learn More About Current Ratio

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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.