SNAPCAUTIOUS

SNAP Current Ratio Analysis

3.53x

Higher than 76% of Communication Services sector peers

Updated 456h ago·SEC filings & market data

Key Takeaway

A current ratio of 3.53x means SNAP has $3.53 in current assets—like cash and receivables—for every $1 of short-term liabilities, indicating a strong ability to cover debts due within a year.

Sector Performance

76th percentile

SNAP

3.53x

Sector Median

1.89x

Sector Avg

2.93x

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Deep Analysis

A current ratio of 3.53x means SNAP has $3.53 in current assets—like cash and receivables—for every $1 of short-term liabilities, indicating a strong ability to cover debts due within a year.

This far exceeds the Communication Services sector median of 1.85x, placing SNAP in the 78th percentile of its peers. The trend data is not available: both the year-over-year and quarter-over-quarter changes are reported as N/A, so no direction can be assessed. The high current ratio suggests low liquidity risk, but without any trend information, it is unclear whether this safety margin is improving or weakening. This metric generally supports a cautious stance because an extremely high ratio can also signal inefficient use of assets, such as holding too much cash or inventory, which may weigh on returns. Overall, the strong current ratio does not contradict the CAUTIOUS verdict, as it offers a defensive buffer but does not address growth or profitability concerns that likely underpin the cautious view.

Frequently Asked Questions

What does the Current Ratio tell investors about SNAP?

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 SNAP's Current Ratio compare to its sector?

SNAP's Current Ratio of 3.53x compares to a Communication Services sector median of 1.89x, placing it in the 76th percentile.

Who are SNAP's closest peers by Current Ratio?

The closest Communication Services peers by Current Ratio include: GOOG (1.92x), BIDU (1.85x), GOOGL (1.92x), YELP (1.74x), SPOT (2.06x).

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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.