SITMCAUTIOUS

SITM Current Ratio Analysis

12.48x

Higher than 99% of Technology sector peers

Updated 312h ago·SEC filings & market data

Key Takeaway

The current ratio of 12.48x means SITM has $12.48 in short-term assets for every $1 of short-term liabilities, indicating a very high ability to pay near-term obligations.

Sector Performance

99th percentile

SITM

12.48x

Sector Median

1.96x

Sector Avg

10.67x

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Deep Analysis

The current ratio of 12.48x means SITM has $12.48 in short-term assets for every $1 of short-term liabilities, indicating a very high ability to pay near-term obligations.

This ratio sits far above the sector median of 1.86x, placing SITM in the 99th percentile among Technology peers. The year-over-year and quarter-over-quarter changes are both listed as N/A, so there is no trend data to assess. Without a trend, the extremely high level alone suggests a strong liquidity position but may also imply an inefficient use of cash or other current assets that could otherwise be deployed for growth. This metric supports the overall CAUTIOUS verdict because an unusually high current ratio can signal that the company is holding excess cash or low-return assets, which may limit returns for investors.

Frequently Asked Questions

What does the Current Ratio tell investors about SITM?

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 SITM's Current Ratio compare to its sector?

SITM's Current Ratio of 12.48x compares to a Technology sector median of 1.96x, placing it in the 99th percentile.

Who are SITM's closest peers by Current Ratio?

The closest Technology peers by Current Ratio include: ORCL (1.12x), PCTY (1.08x), UBER (1.07x), SAP (1.07x), AAPL (1.07x).

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Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

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.