RIONEUTRAL

RIO Current Ratio Analysis

1.44x

Higher than 13% of Basic Materials sector peers

Updated 24h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.44x measures RIO’s ability to pay short-term obligations with its short-term assets; a ratio below 1.0 signals potential liquidity trouble, while above 1.0 is acceptable.

Sector Performance

13th percentile

RIO

1.44x

Sector Median

2.84x

Sector Avg

5.57x

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Deep Analysis

The current ratio of 1.44x measures RIO’s ability to pay short-term obligations with its short-term assets; a ratio below 1.0 signals potential liquidity trouble, while above 1.0 is acceptable.

At 1.44x, RIO sits well below the sector median of 2.84x, placing it in the 13th percentile among Basic Materials peers — meaning 87% of competitors have higher liquidity. The year-over-year and quarter-over-quarter changes are both listed as N/A, so no trend direction can be assessed from the available data. A low liquidity level combined with no observable trend suggests the current ratio is a weak point, but without movement it does not indicate a deteriorating or improving position. This metric contradicts the overall NEUTRAL verdict because the low relative ratio points to elevated short-term financial risk compared to sector norms.

Frequently Asked Questions

What does the Current Ratio tell investors about RIO?

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 RIO's Current Ratio compare to its sector?

RIO's Current Ratio of 1.44x compares to a Basic Materials sector median of 2.84x, placing it in the 13th percentile.

Who are RIO'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).

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Learn More About Current Ratio

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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.