PDDNEUTRAL

PDD Current Ratio Analysis

2.54x

Higher than 85% of Consumer Cyclical sector peers

Updated 264h ago·SEC filings & market data

Key Takeaway

With a current ratio of 2.54x, PDD holds $2.54 in current assets for every $1.00 of current liabilities, indicating a comfortable ability to cover short-term obligations.

Sector Performance

85th percentile

PDD

2.54x

Sector Median

1.44x

Sector Avg

2.73x

Prior Period

2.45x(May 2026)

↑ Improving

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Deep Analysis

With a current ratio of 2.54x, PDD holds $2.54 in current assets for every $1.00 of current liabilities, indicating a comfortable ability to cover short-term obligations.

This places the company well above its Consumer Cyclical sector median of 1.44x and in the 87th percentile among peers, signalling stronger liquidity than most. The year-over-year change is not available, but the metric improved 3.7% quarter-over-quarter from 2.45x to 2.54x, showing a positive short-term trend. The combination of a high level relative to peers and an upward quarterly trend suggests reduced short-term financial risk for investors. This metric supports the overall NEUTRAL verdict, as strong liquidity is a favorable factor but does not outweigh other considerations that keep the stock rating balanced.

Frequently Asked Questions

What does the Current Ratio tell investors about PDD?

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 PDD's Current Ratio compare to its sector?

PDD's Current Ratio of 2.54x compares to a Consumer Cyclical sector median of 1.44x, placing it in the 85th percentile.

Who are PDD's closest peers by Current Ratio?

The closest Consumer Cyclical peers by Current Ratio include: URBN (1.48x), BROS (1.33x), SE (1.58x), BABA (1.28x), SG (1.61x).

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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.