SAPNEUTRAL

Current Ratio

1.07x

Higher than 17% of Technology sector peers

Updated 8h ago

Sector Performance

17th percentile

SAP

1.07x

Sector Median

1.95x

Sector Avg

10.71x

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Deep Analysis

The current ratio of 1.07x means that for every dollar of short-term liabilities, SAP holds $1.07 in current assets like cash and receivables, barely covering its obligations.

This places it well below the technology sector median of 1.84x, landing in the 18th percentile among peers — indicating weaker short-term liquidity than most companies in its industry. Because year-over-year and quarter-over-quarter changes are both listed as N/A, there is no trend data available to assess whether this ratio is improving or deteriorating. The combination of a low current ratio with no observable trend suggests a possible liquidity risk if short-term debts increased, but also leaves uncertainty about the direction of that risk. This metric does not directly contradict the overall NEUTRAL verdict, as the low ratio is a cautionary factor that is offset by the absence of negative trend data.

Frequently Asked Questions

What does the Current Ratio tell investors about SAP?

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 SAP's Current Ratio compare to its sector?

SAP's Current Ratio of 1.07x compares to a Technology sector median of 1.95x, placing it in the 17th percentile.

Who are SAP's closest peers by Current Ratio?

The closest Technology peers by Current Ratio include: U (1.95x), WIT (2.05x), GRAB (1.67x), ORCL (1.12x), ADBE (0.91x).

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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SAP

1.07x

Sector Median

1.95x

Sector Avg

10.71x

How SAP's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.