SMTCCAUTIOUS

SMTC Current Ratio Analysis

2.37x

Higher than 54% of Technology sector peers

Updated 1166h ago·SEC filings & market data

Key Takeaway

A current ratio of 2.37x means SMTC has $2.37 in current assets for every $1 of current liabilities, indicating it can likely cover short-term obligations.

Sector Performance

54th percentile

SMTC

2.37x

Sector Median

1.99x

Sector Avg

16.56x

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Deep Analysis

A current ratio of 2.37x means SMTC has $2.37 in current assets for every $1 of current liabilities, indicating it can likely cover short-term obligations.

This sits above the sector median of 1.96x, placing the company in the 57th percentile among Technology peers—moderately better than half the group. The trend data is unavailable: both the year-over-year change and quarter-over-quarter change are N/A, and there are no historical values beyond the current 2.37x. Because the level is healthy but the trend cannot be assessed, the metric offers no signal on improving or deteriorating liquidity. This high absolute coverage reduces immediate default risk, yet the missing trend leaves uncertainty about whether the buffer is stable. The 2.37x ratio supports the overall CAUTIOUS verdict by confirming adequate liquidity, while the lack of trend data reinforces caution rather than confidence.

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 1.99x, placing it in the 54th percentile.

Who are SMTC's closest peers by Current Ratio?

The closest Technology peers by Current Ratio include: CRWD (1.53x), SMAR (1.51x), ASML (1.36x), ACN (1.34x), BR (1.24x).

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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.