RLNEUTRAL

RL Current Ratio Analysis

2.04x

Updated 345h ago·SEC filings & market data

Key Takeaway

The current ratio measures a company’s ability to pay off short-term debts with its short-term assets, and at 2.04x, RL holds $2.04 in such assets for every $1 in current liabilities.

Sector Performance

78th percentile

2.04x

Sector Median

1.26x

Sector Avg

2.61x

Prior Period

2.13x(Aug 2026)

↓ Declining

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Deep Analysis

The current ratio measures a company’s ability to pay off short-term debts with its short-term assets, and at 2.04x, RL holds $2.04 in such assets for every $1 in current liabilities.

That level sits well above the sector median of 1.25x, placing RL in the 78th percentile among its sector peers. The trend direction is N/A, with no year-over-year change reported, but quarter-over-quarter the ratio fell 4.2% from 2.13x to 2.04x. The strong absolute level indicates a comfortable liquidity cushion, while the recent quarterly dip shows that cushion is slightly thinner than before, though the unknown annual trend limits interpretation. This combination of high peer-relative liquidity and a moderate quarterly decline points to low near-term default risk without signaling unusual growth or distress. The metric supports the overall NEUTRAL verdict: it confirms a stable financial position that neither elevates nor underm

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.

Who are RL's closest peers by Current Ratio?

The closest peers by Current Ratio include: NWS (1.62x), ESTC (1.68x), DXCM (1.73x), GLW (1.81x), TEL (1.88x).

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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.