TWLONEUTRAL

TWLO Current Ratio Analysis

4.66x

Higher than 88% of Communication Services sector peers

Updated 168h ago·SEC filings & market data

Key Takeaway

TWLO's current ratio of 4.66x means the company holds $4.66 in short-term assets — such as cash and receivables — for every $1 of short-term liabilities due within a year, signaling strong ability to cover near-term obligations.

Sector Performance

88th percentile

TWLO

4.66x

Sector Median

1.89x

Sector Avg

2.93x

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Deep Analysis

TWLO's current ratio of 4.66x means the company holds $4.66 in short-term assets — such as cash and receivables — for every $1 of short-term liabilities due within a year, signaling strong ability to cover near-term obligations.

This is well above the sector median of 1.89x, placing TWLO in the 88th percentile among its Communication Services peers, indicating substantially higher liquidity than the typical competitor. No year-over-year or quarter-over-quarter changes are available, and the trend direction over the last eight quarters is not provided, so there is no data to assess whether liquidity is rising or falling. The combination of a high current ratio and a complete lack of trend information creates an ambiguous picture — the strong liquidity could buffer against short-term shocks, but without a trend direction, it is impossible to gauge if the company is becoming more or less efficient. This metric neither confirms nor contradicts the overall NEUTRAL verdict, as a single-point, above-average ratio does not offset the absence of trend data or other financial considerations that inform the rating.

Frequently Asked Questions

What does the Current Ratio tell investors about TWLO?

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 TWLO's Current Ratio compare to its sector?

TWLO's Current Ratio of 4.66x compares to a Communication Services sector median of 1.89x, placing it in the 88th percentile.

Who are TWLO's closest peers by Current Ratio?

The closest Communication Services peers by Current Ratio include: GOOG (1.92x), BIDU (1.85x), GOOGL (1.92x), YELP (1.74x), SPOT (2.06x).

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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TWLO

4.66x

Sector Median

1.89x

Sector Avg

2.93x

How TWLO's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.