SOUNWCAUTIOUS

SOUNW Current Ratio Analysis

3.94x

Higher than 80% of Technology sector peers

Updated 275h ago·SEC filings & market data

Key Takeaway

A current ratio of 3.94x means SoundHound AI has $3.94 in current assets for every $1 of current liabilities, showing it can cover short-term obligations comfortably.

Sector Performance

80th percentile

SOUNW

3.94x

Sector Median

1.99x

Sector Avg

16.56x

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Deep Analysis

A current ratio of 3.94x means SoundHound AI has $3.94 in current assets for every $1 of current liabilities, showing it can cover short-term obligations comfortably.

This sits well above the sector median of 1.96x, placing the company in the 79th percentile among technology peers. The trend data is not available: both the year-over-year change and quarter-over-quarter change are listed as N/A, so no direction can be confirmed from this metric. With a high level but no trend information, the ratio suggests a strong liquidity position today, yet offers no evidence of whether that cushion is improving or eroding. That stability reduces immediate solvency risk, but the absence of trajectory leaves uncertainty about future working capital management. This metric supports the overall CAUTIOUS verdict because a single strong snapshot, without a trend, does not offset other concerns that drive a cautious stance.

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 1.99x, placing it in the 80th percentile.

Who are SOUNW'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.