RDDTNEUTRAL

RDDT Current Ratio Analysis

12.73x

Higher than 100% of Communication Services sector peers

Updated 110h ago·SEC filings & market data

Key Takeaway

The current ratio of 12.73x means RDDT holds $12.73 in current assets for every $1 of short-term liabilities, indicating very high liquidity and ability to pay near-term obligations.

Sector Performance

100th percentile

RDDT

12.73x

Sector Median

1.89x

Sector Avg

2.93x

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Deep Analysis

The current ratio of 12.73x means RDDT holds $12.73 in current assets for every $1 of short-term liabilities, indicating very high liquidity and ability to pay near-term obligations.

This places the company at the 100th percentile among Communication Services peers, far above the sector median of 1.89x. No trend data is available: the year-over-year change, quarter-over-quarter change, and last eight quarters are all marked as N/A. Because the level is extremely high but no trend direction can be assessed, the absence of movement data limits any conclusion about improving or worsening financial flexibility. This combination—extremely strong liquidity with no track record—does not create a clear risk or opportunity signal, as extreme ratios can also reflect inefficient asset use. The high current ratio alone supports a neutral verdict by showing defensive strength, but without trend context it neither contradicts nor reinforces the overall NEUTRAL rating.

Frequently Asked Questions

What does the Current Ratio tell investors about RDDT?

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 RDDT's Current Ratio compare to its sector?

RDDT's Current Ratio of 12.73x compares to a Communication Services sector median of 1.89x, placing it in the 100th percentile.

Who are RDDT's closest peers by Current Ratio?

The closest Communication Services peers by Current Ratio include: GOOG (1.92x), BIDU (1.85x), GOOGL (1.92x), YELP (1.74x), SPOT (2.06x).

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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.