REICAUTIOUS

REI Current Ratio Analysis

0.54x

Updated 184h ago·SEC filings & market data

Key Takeaway

The current ratio of 0.54x means REI has only $0.54 of current assets for every $1.00 of current liabilities, indicating tight short-term liquidity.

Sector Performance

9th percentile

REI

0.54x

Sector Median

1.26x

Sector Avg

2.60x

Prior Period

0.40x(Jul 2026)

↑ Improving

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Deep Analysis

The current ratio of 0.54x means REI has only $0.54 of current assets for every $1.00 of current liabilities, indicating tight short-term liquidity.

The sector median is 1.25x, and REI sits at the 8th percentile, placing it far below most peers. The year-over-year change is N/A, but the quarter-over-quarter change is +35.0%, rising from 0.40x to the current 0.54x. The level remains a serious constraint, though the upward move shows some near-term balance sheet relief. This combination of a low ratio with a recent improvement still points to elevated default risk relative to the sector. Overall, the metric supports the CAUTIOUS verdict, as liquidity remains well under the median threshold despite the positive quarter.

Frequently Asked Questions

What does the Current Ratio tell investors about REI?

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.

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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.