TELNEUTRAL

TEL Current Ratio Analysis

1.88x

Updated 5h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.88x means the company has $1.88 in current assets for every $1 of current liabilities it must pay within a year.

Sector Performance

75th percentile

TEL

1.88x

Sector Median

1.26x

Sector Avg

2.61x

Prior Period

1.89x(Jul 2026)

→ Stable

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Deep Analysis

The current ratio of 1.88x means the company has $1.88 in current assets for every $1 of current liabilities it must pay within a year.

That is well above the sector median of 1.24x, placing it in the 77th percentile among sector peers. The trend is largely undefined: year-over-year change is N/A, and the quarter-over-quarter change is a slight decline of -0.5%, with only two historical values available (1.89x prior, then 1.88x). The combination of a high liquidity level and only a minimal recent dip implies low short-term insolvency risk, but no clear momentum toward improvement or deterioration. This metric supports the overall NEUTRAL verdict because it shows solid liquidity without signaling any exceptional strength or emerging weakness.

Frequently Asked Questions

What does the Current Ratio tell investors about TEL?

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.

Who are TEL's closest peers by Current Ratio?

The closest peers by Current Ratio include: NWS (1.62x), IR (1.62x), ESTC (1.68x), DXCM (1.73x), GLW (1.81x).

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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.