POWINEUTRAL

POWI Current Ratio Analysis

6.88x

Higher than 92% of Technology sector peers

Updated 26h ago·SEC filings & market data

Key Takeaway

A company's current ratio measures its ability to pay short-term debts with short-term assets; a ratio of 6.88x means POWI has $6.88 in current assets for every $1 of current liabilities, indicating very high short-term liquidity.

Sector Performance

92th percentile

POWI

6.88x

Sector Median

1.96x

Sector Avg

10.67x

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Deep Analysis

A company's current ratio measures its ability to pay short-term debts with short-term assets; a ratio of 6.88x means POWI has $6.88 in current assets for every $1 of current liabilities, indicating very high short-term liquidity.

This is well above the technology sector median of 1.96x, placing POWI in the 92nd percentile among its peers. No historical trend is available because the year-over-year change, quarter-over-quarter change, and data for the last eight quarters are all reported as N/A. The combination of an exceptionally high current ratio with no observable trend suggests the company is highly liquid but offers no information on whether this level is stable or changing, which limits the ability to assess future risk or opportunity. This metric alone neither supports nor contradicts the overall NEUTRAL verdict—the high liquidity is a positive buffer, but the lack of trend data prevents drawing a clear conclusion about its investment implications.

Frequently Asked Questions

What does the Current Ratio tell investors about POWI?

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 POWI's Current Ratio compare to its sector?

POWI's Current Ratio of 6.88x compares to a Technology sector median of 1.96x, placing it in the 92th percentile.

Who are POWI's closest peers by Current Ratio?

The closest Technology peers by Current Ratio include: ASAN (1.15x), ORCL (1.12x), 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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POWI

6.88x

Sector Median

1.96x

Sector Avg

10.67x

How POWI's Current Ratio compares to sector peers.

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