TMONEUTRAL

TMO Current Ratio Analysis

1.55x

Updated 926h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.55x means TMO has $1.55 in current assets for every $1 of current liabilities, showing it can cover short-term obligations.

Sector Performance

63th percentile

TMO

1.55x

Sector Median

1.26x

Sector Avg

2.60x

Prior Period

1.53x(Jul 2026)

↑ Improving

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Deep Analysis

The current ratio of 1.55x means TMO has $1.55 in current assets for every $1 of current liabilities, showing it can cover short-term obligations.

This sits above the sector median of 1.25x, placing TMO in the 64th percentile among peers, so liquidity is stronger than most comparable companies. The year-over-year change and 8-quarter trend are not available, but the quarter-over-quarter change is +1.3%, with the ratio moving from 1.53x to 1.55x. The combination of a healthy level and a small recent improvement suggests limited short-term liquidity risk, though the lack of longer trend data reduces confidence in the direction. This metric supports the overall NEUTRAL verdict because it indicates adequate, not exceptional, financial flexibility without signaling a decisive advantage or a pressing concern.

Frequently Asked Questions

What does the Current Ratio tell investors about TMO?

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.

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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.