WMNEUTRAL

WM Current Ratio Analysis

0.93x

Updated 48h ago·SEC filings & market data

Key Takeaway

A current ratio of 0.93x means the company has $0.93 in current assets (cash, receivables, inventory) for every $1.00 of current liabilities due within a year, indicating a slight short-term liquidity shortfall.

Sector Performance

29th percentile

0.93x

Sector Median

1.20x

Sector Avg

2.56x

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Deep Analysis

This sits below the sector median of 1.20x and places WM at the 29th percentile among its peers—meaning 71% of sector companies have a higher current ratio. Trend data is not provided, with both the year-over-year change and quarter-over-quarter change listed as N/A, so no directional insight is available from recent history. Without a trend, the low level alone suggests a heightened near-term liquidity risk, as the company has less buffer to cover obligations if cash inflows slow. This metric contradicts the overall NEUTRAL verdict on the stock because a ratio below 1.0x and far below the sector median points to a specific weakness that warrants caution, not neutrality.

Frequently Asked Questions

What does the Current Ratio tell investors about WM?

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 WM's closest peers by Current Ratio?

The closest peers by Current Ratio include: GEN (0.40x), USB (0.40x), CHTR (0.40x), DRI (0.39x), UDR (0.34x).

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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.