PAYCNEUTRAL

Current Ratio

1.08x

Updated 294h ago

Sector Performance

39th percentile

PAYC

1.08x

Sector Median

1.20x

Sector Avg

2.57x

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Deep Analysis

The current ratio of 1.08x measures how many times a company's short-term assets cover its short-term liabilities; a ratio above 1.0x indicates it can pay upcoming bills, while below 1.0x signals potential liquidity stress.

PAYC's 1.08x sits below the sector median of 1.21x and lands at the 38th percentile among peers, meaning 62% of comparable firms have higher liquidity coverage. Over the last eight quarters the metric has been stable, with no year-over-year data available and a quarter-over-quarter increase of +5.9%, moving from 1.02x to 1.08x. The combination of a slightly below-median level and a stable upward trend implies limited immediate liquidity risk but no cushion for unexpected cash demands. This profile supports the overall NEUTRAL verdict directly: the current ratio is adequate but not strong enough to shift the stock to a bullish or bearish stance.

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: KEY (0.42x), GEN (0.40x), CHTR (0.40x), USB (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.

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PAYC

1.08x

Sector Median

1.20x

Sector Avg

2.57x

How PAYC's Current Ratio compares to sector peers.

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