TM Current Ratio Analysis

The current ratio measures a company’s ability to cover its short-term obligations with its short-term assets; a ratio above 1.0x generally indicates sufficient liquidity.

TM’s current ratio of 1.27x falls below the consumer cyclical sector median of 1.44x and sits at the 40th percentile among sector peers, meaning nearly 60% of peers have higher liquidity. No trend information is available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and the last eight quarters show no data. Without a trend, investors cannot assess whether TM’s liquidity is improving or deteriorating, limiting the insight into near-term financial flexibility. The level alone—1.27x—is above the 1.0x threshold, indicating adequate short-term coverage, but it is lower than the typical peer, which may signal slightly tighter liquidity. This metric neither strongly supports nor contradicts the overall NEUTRAL verdict, as the static ratio suggests a middling liquidity position that does not introduce clear risk or opportunity on its own.

Frequently Asked Questions

Closest Sector Peers