ZBHNEUTRAL

ZBH Current Ratio Analysis

1.73x

Higher than 43% of Healthcare sector peers

Updated 24h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.73x measures a company's ability to pay short-term obligations with its short-term assets; a ratio above 1.0x indicates it has more current assets than current liabilities.

Sector Performance

43th percentile

ZBH

1.73x

Sector Median

2.02x

Sector Avg

3.77x

Prior Period

2.94x(May 2026)

↓ Declining

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Deep Analysis

The current ratio of 1.73x measures a company's ability to pay short-term obligations with its short-term assets; a ratio above 1.0x indicates it has more current assets than current liabilities.

This level is below the healthcare sector median of 2.02x, placing ZBH in the 43rd percentile among its peers, meaning nearly 60% of peers maintain higher liquidity. The year-over-year change is not available, but the quarter-over-quarter change of -41.2% shows a sharp decline from the prior quarter's 2.94x to the current 1.73x, based on the two most recent data points. The combination of a below-median current ratio and a steep quarterly drop suggests increased short-term liquidity risk, though the absolute level still exceeds 1.0x. This metric introduces a cautionary element that partially contradicts the overall NEUTRAL verdict, as the deteriorating liquidity could offset other positive factors. A NEUTRAL stance is still reasonable, but the decline warrants monitoring for further deterioration.

Frequently Asked Questions

What does the Current Ratio tell investors about ZBH?

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 ZBH's Current Ratio compare to its sector?

ZBH's Current Ratio of 1.73x compares to a Healthcare sector median of 2.02x, placing it in the 43th percentile.

Who are ZBH's closest peers by Current Ratio?

The closest Healthcare peers by Current Ratio include: A (2.10x), BSX (1.90x), BAX (1.85x), EXAS (2.23x), TMO (1.53x).

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Learn More About Current Ratio

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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.