SOUNW Current Ratio Analysis
Higher than 79% of Technology sector peers
Updated 26h ago·SEC filings & market data
Key Takeaway
The current ratio of 3.94x means SoundHound AI has $3.94 in current assets for every $1 of current liabilities, indicating it can easily cover short-term obligations.
Sector Performance
79th percentileSOUNW
3.94x
Sector Median
1.96x
Sector Avg
10.67x
Deep Analysis
The current ratio of 3.94x means SoundHound AI has $3.94 in current assets for every $1 of current liabilities, indicating it can easily cover short-term obligations.
This is nearly double the sector median of 1.96x, placing the company in the 79th percentile among Technology peers—well above average liquidity. However, trend data for the current ratio is not available, with both the year-over-year change and quarter-over-quarter change marked as N/A, so there is no way to assess if liquidity is improving or deteriorating. The combination of a high liquidity level with no trend information implies a reduced ability to evaluate near-term financial risk, as a single snapshot may not reflect upcoming changes. While a strong current ratio is generally positive, the absence of trend data and the overall CAUTIOUS verdict from the platform suggest this metric alone does not override other concerns. The high current ratio does not contradict the CAUTIOUS outlook, but it is outweighed by other factors driving the caution.
Frequently Asked Questions
What does the Current Ratio tell investors about SOUNW?
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 SOUNW's Current Ratio compare to its sector?
SOUNW's Current Ratio of 3.94x compares to a Technology sector median of 1.96x, placing it in the 79th percentile.
Who are SOUNW's closest peers by Current Ratio?
The closest Technology peers by Current Ratio include: ASAN (1.15x), ORCL (1.12x), UBER (1.07x), SAP (1.07x), AAPL (1.07x).
Learn More About Current Ratio
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.
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3.94x
Sector Median
1.96x
Sector Avg
10.67x
How SOUNW's Current Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.