Current Ratio
Higher than 81% of Consumer Cyclical sector peers
Updated 296h ago
Sector Performance
81th percentileRL
2.13x
Sector Median
1.44x
Sector Avg
2.69x
Deep Analysis
The current ratio of 2.13x means RL has $2.13 in current assets for every $1 of current liabilities, indicating it can cover short-term obligations comfortably.
This is well above the consumer cyclical sector median of 1.44x, placing RL in the 81st percentile among its peers—meaning only 19% of sector companies have a higher ratio. The year-over-year change is not available, but the quarter-over-quarter increase of +1.4% from 2.10x shows a slight improvement in short-term liquidity. A high current ratio combined with a rising trend suggests low near-term default risk, though it may also imply RL is holding more cash or inventory than necessary, which could drag on returns. This metric supports the overall NEUTRAL verdict: the strong liquidity position reduces downside risk, but it does not signal a catalyst for outperformance, aligning with a balanced view.
Frequently Asked Questions
What does the Current Ratio tell investors about RL?
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 RL's Current Ratio compare to its sector?
RL's Current Ratio of 2.13x compares to a Consumer Cyclical sector median of 1.44x, placing it in the 81th percentile.
Who are RL's closest peers by Current Ratio?
The closest Consumer Cyclical peers by Current Ratio include: URBN (1.48x), BROS (1.33x), SHAK (1.69x), MELI (1.16x), CHPT (1.15x).
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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2.13x
Sector Median
1.44x
Sector Avg
2.69x
How RL's Current Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.