WMB Current Ratio Analysis

The current ratio measures whether a company can cover short-term obligations with short-term assets; a reading of 0.48x means WMB has only $0.48 in current assets for every $1 of current liabilities due within a year.

That is far below the sector median of 1.26x, placing WMB at the 7th percentile among peers, so nearly all comparable firms are more liquid. The metric fell 42.2% quarter-over-quarter from 0.83x to 0.48x, and no year-over-year figure is available; the only two historical points confirm a sharp recent deterioration. A low level combined with a steep decline signals elevated near-term liquidity risk, as the company’s cushion for unexpected cash outflows has thinned markedly. This directly supports the CAUTIOUS verdict, because the balance sheet shows less flexibility to absorb shocks without relying on external financing.

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