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Current Ratio History Chart
Chart any stock's current ratio across the last 10 fiscal years and see at a glance whether short-term liquidity is strengthening or eroding. Color-coded bars flag each year's liquidity zone — from Strong to Stressed — with a one-line verdict. Pair it with the current ratio calculator for a live reading and the current ratio screener to benchmark against peers.
How to Read Current Ratio Trends
The current ratio measures how many dollars of current assets a company holds for every dollar of current liabilities due within the year. A ratio above 2× signals a comfortable cushion; below 1× means short-term obligations exceed readily available assets. Charting it over time tells a richer story than any single year: a rising ratio suggests the company is building liquidity headroom, while a declining one may signal mounting obligations, aggressive share buybacks funded by debt, or a working capital squeeze.
Context matters. A retailer running a 1.1× ratio may be perfectly healthy if its inventory turns over every 30 days. A manufacturer with the same ratio, holding slow-moving parts, may face real near-term stress. Check the trend against the working capital calculator to see the absolute dollar buffer, and compare to the quick ratio — which strips inventory — to understand how much of the cushion depends on converting stock into cash.
For a broader liquidity picture, screen the market with the current ratio screener, which ranks mid-cap peers side by side, or read the balance sheet guide to understand which line items flow into this ratio and why they move.
Frequently Asked Questions
What does the current ratio history chart show?
It plots a company's current ratio — current assets divided by current liabilities — for up to 10 fiscal years. Reading the bars left to right shows whether the company's short-term liquidity cushion has been building or eroding over time. Bars are color-coded: green for a ratio at or above 2× (strong), yellow for 1–2× (adequate to healthy), orange for 0.5–1× (tight), and red below 0.5× (stressed).
What is a good current ratio?
A current ratio between 1.5 and 2.5 is generally considered healthy for most industries — it means the company holds $1.50 to $2.50 in current assets for every dollar of short-term obligations. Below 1.0 means current liabilities exceed current assets, which can signal liquidity stress. However, the right range varies: retailers and fast-moving consumer businesses often run leaner ratios of 1.0–1.5 because of predictable cash flows, while manufacturers and capital-intensive firms typically hold more buffer.
How is the current ratio calculated here?
Current ratio equals total current assets divided by total current liabilities, taken from Yahoo Finance annual balance sheet filings. Both the numerator and denominator come from the same fiscal year-end balance sheet, so the ratio reflects the snapshot at the close of each fiscal year, not a quarterly average.
Why might a very high current ratio be a warning sign?
A current ratio well above 3× or 4× can indicate the company is sitting on excess cash or inventory rather than deploying capital efficiently. Idle cash earns little, and bloated inventory can become obsolete or require markdowns. The trend matters more than the absolute level: a ratio declining from 4× toward 2× may be a sign of improving capital efficiency, not deteriorating liquidity.
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