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Current Ratio

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63.47
Price
Fair Value
Upside
55.92 - 95.97
52-week range

Analysis

Fiscal Years
Trailing Twelve Months
Fiscal Halfs
Fiscal Quarters
Daily
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The following section summarizes insights on 's Current Ratio:

Aug 2016Aug 2018Aug 2020Aug 2022Aug 20240.2x0.6x1.0x1.4x

Performance Summary
  • Sodexo's latest twelve months current ratio is 1.1x
  • Sodexo's current ratio for fiscal years ending August 2020 to 2024 averaged 1.1x.
  • Sodexo's operated at median current ratio of 1.1x from fiscal years ending August 2020 to 2024.
  • Looking back at the last 5 years, Sodexo's current ratio peaked in August 2023 at 1.2x.
  • Sodexo's current ratio hit its 5-year low in August 2020 of 1.0x.
  • Sodexo's current ratio decreased in 2024 (1.1x, -7.0%) and increased in 2020 (1.0x, +1.3%), 2021 (1.1x, +10.5%), 2022 (1.1x, +0.5%), and 2023 (1.2x, +6.3%).

Benchmarks

Metric Usage: Current Ratio

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current_ratio
Slug
number
Datatype
text
Format
current
Default Period
FY, Q, LTM, YTD
Periods Supported
Free
Plan

To view the full list of supported financial metrics please see Complete Metrics Listing.

Similar Metrics

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Metrics similar to Current Ratio in the risk category include:

  • EBITDA Interest Coverage Ratio - A ratio used to assess a firm's ability to pay interest expenses based on EBITDA.
  • FCF / OCF - A ratio that measures the amount of free cash flows (FCF) for each dollar of operating cash flows (OCF).
  • Capital Expenditures Coverage - The amount a company outlays for capital assets for each dollar of cash dollar it generates from those investments.
  • FCF / Net Income - This data item measures the ratio of levered free cash flow to net income to common, excluding extra items. It is a quick and helpful check on the quality of earnings.
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Current Ratio

A ratio that compares a company's current total assets to its current total liabilities.

Definition of Current Ratio

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Current Ratio measures whether a firm is capitalized with enough assets to pay its debts over the next twelve months by comparing a firm’s current assets to its current liabilities.

Current Ratio is defined as:

Current Ratio = Current Assets / Current Liabilities

Current Ratio for Sodexo is calculated as follows:

Current Assets [ 6.416 B ]
(/) Current Liabilities [ 5.966 B ]
(=) Current Ratio [ 1.1x ]

The tables below summarizes the trend in Sodexo’s Current Ratio over the last five years:

Fiscal Year Current Assets Current Liabilities Current Ratio
2020-08-31 9.094 B 9.24 B 1.0x
2021-08-31 11.373 B 10.453 B 1.1x
2022-08-31 10.18 B 9.313 B 1.1x
2023-08-31 12.355 B 10.633 B 1.2x
2024-08-31 7.07 B 6.545 B 1.1x

The tables below summarizes the trend in Sodexo’s current ratio over the last four quarters:

Quarter Ending Current Assets Current Liabilities Current Ratio
2024-05-31 6.94 B 6.424 B 1.1x
2024-08-31 7.07 B 6.545 B 1.1x
2024-11-30 6.546 B 6.087 B 1.1x
2025-02-28 6.416 B 5.966 B 1.1x

While ratios vary by industry and circumstances, healthy companies generally have ratios between 1.5 and 3.

A high current ratio is not necessarily a good thing. The company may be inefficiently using its current assets or short-term financing facilities.

While a low current ratio (values less than 1) may indicate that a firm is having difficulty meeting current obligations, it may also reflect the organizations ability to borrow against good prospects to meet current obligations. Strong businesses that can turn inventory faster than due dates on their accounts payable may also have a current ratio less than one.


Click the link below to download a spreadsheet with an example Current Ratio calculation for Sodexo SA below:

Sector Benchmark Analysis

Sector
Industry Group
Industry
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0.2x3.2x6.2x10.1x50150250

The chart above depicts the distribution of current ratio for companies operating in the Consumer Discretionary sector in the Developed economic region. Over 2,490 companies were considered in this analysis, and 2,398 had meaningful values. The average current ratio of companies in the sector is 1.9x with a standard deviation of 1.5x.

Sodexo SA's Current Ratio of 1.1x ranks in the 29.2% percentile for the sector. The following table provides additional summary stats:

Current Ratio In The Consumer Discretionary Sector
Economic Risk RegionDeveloped
Total Constituents2,498
Included Constituents2,398
Min0.1x
Max10.0x
Median1.5x
Mean1.9x
Standard Deviation1.5x

You can find companies with similar current ratio using this stock screener.

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