TWTRCAUTIOUS

TWTR Current Ratio Analysis

7.15x

Higher than 94% of Communication Services sector peers

Updated 1632h ago·SEC filings & market data

Key Takeaway

The current ratio of 7.15x means Twitter held $7.15 in current assets (like cash and receivables) for every $1 of current liabilities due within a year, indicating a very high ability to cover short-term debts.

Sector Performance

94th percentile

TWTR

7.15x

Sector Median

1.89x

Sector Avg

2.93x

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Deep Analysis

The current ratio of 7.15x means Twitter held $7.15 in current assets (like cash and receivables) for every $1 of current liabilities due within a year, indicating a very high ability to cover short-term debts.

This is far above the sector median of 1.85x, placing Twitter in the 94th percentile among Communication Services peers—only 6% of rivals have a higher ratio. Trend data is not available: the year-over-year and quarter-over-quarter changes are both listed as N/A, so no direction can be assessed. The combination of a very high current ratio with no trend information suggests low immediate liquidity risk, but without historical context it is unclear whether this surplus is a recent buildup or a persistent condition. This high liquidity level appears to support the CAUTIOUS verdict because an excessively high current ratio can signal inefficient use of cash or assets, potentially masking operational or strategic issues that warrant caution.

Frequently Asked Questions

What does the Current Ratio tell investors about TWTR?

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 TWTR's Current Ratio compare to its sector?

TWTR's Current Ratio of 7.15x compares to a Communication Services sector median of 1.89x, placing it in the 94th percentile.

Who are TWTR'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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TWTR

7.15x

Sector Median

1.89x

Sector Avg

2.93x

How TWTR's Current Ratio compares to sector peers.

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