PPGNEUTRAL

PPG Current Ratio Analysis

1.61x

Higher than 20% of Basic Materials sector peers

Updated 26h ago·SEC filings & market data

Key Takeaway

A current ratio of 1.61x means PPG has $1.61 in current assets—like cash and receivables—for every $1.00 of current liabilities due within a year, so it can broadly cover short-term obligations.

Sector Performance

20th percentile

PPG

1.61x

Sector Median

2.84x

Sector Avg

5.57x

📊

Deep Analysis

A current ratio of 1.61x means PPG has $1.61 in current assets—like cash and receivables—for every $1.00 of current liabilities due within a year, so it can broadly cover short-term obligations.

However, this is well below the Basic Materials sector median of 2.84x, placing PPG in the 20th percentile among its peers, indicating leaner liquidity relative to the industry. The metric shows no trend data: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and no historical values beyond the single 1.61x figure are available. Without a trend, the analysis relies solely on the current level, which at 1.61x is below the sector norm but still above 1.0x, implying no immediate liquidity distress but a tighter buffer than most peers. This combination suggests a modest risk that PPG may have less flexibility to handle unexpected cash needs compared to its sector. This metric does not directly contradict the overall NEUTRAL verdict, as the current ratio highlights a below-average liquidity position without severe alarm, aligning with a cautious, neutral stance.

Frequently Asked Questions

What does the Current Ratio tell investors about PPG?

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 PPG's Current Ratio compare to its sector?

PPG's Current Ratio of 1.61x compares to a Basic Materials sector median of 2.84x, placing it in the 20th percentile.

Who are PPG's closest peers by Current Ratio?

The closest Basic Materials peers by Current Ratio include: PAAS (2.84x), KGC (2.84x), AG (2.73x), AEM (3.15x), RGLD (3.52x).

📚

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.