SHOP Current Ratio Analysis

The current ratio of 5.35x means SHOP has $5.35 in current assets (cash, receivables, inventory) for every $1 of current liabilities due within a year, so it can easily cover short-term obligations.

This is far above the sector median of 1.25x, placing SHOP in the 95th percentile among peers, meaning only 5% of comparable companies have higher liquidity. The multi-quarter trend is not available, and the year-over-year change is also not available; however, the quarter-over-quarter change shows a decline of -13.7%, from 6.20x to 5.35x. A very high liquidity level paired with that quarterly decline suggests SHOP still has a large safety margin, but the shrinking buffer warrants monitoring if the slide continues. For investment risk, the metric points to low near-term solvency risk, which is an opportunity support for holding the stock. This supports the overall BULLISH verdict, because strong liquidity reduces the chance of financial distress and gives the company room to invest or weather downt

Frequently Asked Questions