SMTCCAUTIOUS

SMTC Current Ratio Analysis

2.37x

Higher than 57% of Technology sector peers

Updated 253h ago·SEC filings & market data

Key Takeaway

The current ratio measures a company’s ability to cover its short-term obligations with its short-term assets.

Sector Performance

57th percentile

SMTC

2.37x

Sector Median

1.91x

Sector Avg

11.25x

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Deep Analysis

The current ratio measures a company’s ability to cover its short-term obligations with its short-term assets.

SMTC’s current ratio of 2.37x means it has $2.37 in current assets for every $1 of current liabilities. This is above the sector median of 1.96x, placing SMTC in the 57th percentile among its Technology peers – higher than 57% of comparable firms. However, the year-over-year change and quarter-over-quarter change are both reported as N/A, so no trend direction is available over the last eight quarters. The combination of a level above the sector median but with no trend data offers an incomplete picture: the ratio suggests adequate liquidity, but the lack of historical context prevents assessing whether this strength is improving or eroding. This metric alone does not contradict the overall CAUTIOUS verdict, because a strong current ratio can coexist with other concerns (e.g., profitability or growth risks) that drive the cautious rating.

Frequently Asked Questions

What does the Current Ratio tell investors about SMTC?

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 SMTC's Current Ratio compare to its sector?

SMTC's Current Ratio of 2.37x compares to a Technology sector median of 1.91x, placing it in the 57th percentile.

Who are SMTC's closest peers by Current Ratio?

The closest Technology peers by Current Ratio include: ASAN (1.15x), ORCL (1.12x), PCTY (1.08x), AAPL (1.07x), UBER (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.