The CatoCATO +3.73%65 Current Ratio is 1.29 as of Apr. 2026, which is 22% below its 10-year median of 1.66. GuruFocus rates CATO with a GF Score™ of 65/100 and a GF Value™ of $4.19 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,132 Retail - Cyclical companies, The Cato ranks worse than 62.37% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. The Cato's current ratio for the quarter that ended in Apr. 2026 was 1.29.
The Cato has a current ratio of 1.29. It generally indicates good short-term financial strength.
The historical rank and industry rank for The Cato's Current Ratio or its related term are showing as below:
CATO'
s Current Ratio Range Over the Past 10 Years
Min: 1.19 Med: 1.66 Max: 3.11
Current: 1.29
During the past 13 years, The Cato's highest Current Ratio was 3.11. The lowest was 1.19. And the median was 1.66.
CATO's Current Ratio is ranked worse than 62.37% of 1132
companies
in the Retail - Cyclical industry
Industry Median: 1.58
vs CATO: 1.29
The Cato (NYSE:CATO) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
The Cato Current Ratio Related Terms
The Cato Current Ratio Historical Data
* Premium members only.
The historical data trend for The Cato's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CATO vs DXLG, BRIA, BIRD: Current Ratio Comparison
For the Apparel Retail subindustry, The Cato's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Cato Current Ratio vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Cato's Current Ratio distribution charts can be found below:
* The bar in red indicates where The Cato's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Cato (CATO) has a Current Ratio of 1.29 as of Apr. 2026. This is 22% below median its historical median of 1.66. Over the past decade, The Cato's Current Ratio has ranged from 1.19 to 3.11. According to the industry distribution chart, The Cato ranks #706 out of 1132 companies in the Retail - Cyclical industry, placing it in the top 62.4%.
Is The Cato's Current Ratio too high?
The Cato's current Current Ratio of 1.29 is 22% below median its 10-year median of 1.66. Over the past 10 years, this metric has ranged from a low of 1.19 to a high of 3.11. The Retail - Cyclical industry median Current Ratio is 1.58. The Cato's value of 1.29 is 18.4% below this industry median. Based on the distribution chart, The Cato ranks #706 out of 1132 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, The Cato has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Cato's Current Ratio compare to DXLG and BRIA?
According to the Retail - Cyclical industry distribution chart, The Cato ranks #706 out of 1132 companies for Current Ratio. This places The Cato in the lower half of its industry. The industry median Current Ratio is 1.58. The Cato's value of 1.29 is 18.4% below this benchmark. Historically, The Cato's own Current Ratio has ranged from 1.19 to 3.11 over the past decade. While the company's 10-year median is 1.66 vs. the industry median of 1.58, The Cato has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Retail - Cyclical company?
The median Current Ratio among Retail - Cyclical companies is 1.58, based on 1,132 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cato's current Current Ratio of 1.29 is 18.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Retail - Cyclical industry, the median Current Ratio is 1.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cato's current Current Ratio is 1.29, which is 22% below median its own 10-year median of 1.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Cato stock overvalued right now?
Based on GuruFocus' analysis, The Cato (CATO) is currently considered Modestly Undervalued. The stock's GF Value™ is $4.19, compared to a current price of $3.34 — trading 20.3% below its estimated fair value. The current Current Ratio is 1.29, which is 22% below median its 10-year median of 1.66 and 18.4% below the Retail - Cyclical industry median of 1.58. The Cato's overall GF Score™ is 65/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For The Cato (CATO), the current Current Ratio is 1.29 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Cato (CATO) Overvalued in 2026?
Based on GuruFocus' analysis, The Cato stock appears to be undervalued.
The current stock price of $3.34 is trading 20.3% below its estimated GF Value™ of $4.19.
GuruFocus considers The Cato to be Modestly Undervalued.
Key valuation signals for CATO:
Current Ratio: 1.29 (22% below median its 10-year median of 1.66)
GF Value™: $4.19 vs. price of $3.34 (20.3% below fair value)
Industry Position: 18.4% below the Retail - Cyclical median (#706 of 1132)
No single metric tells the full story. See the CATO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Cato Corp seeks to offer quality fashion apparel and accessories at low prices every day, in junior/missy and plus sizes. The Cato concept's stores and e-commerce website feature a broad assortment of apparel and accessories, including dressy, career, and casual sportswear, dresses, coats, shoes, lingerie, costume jewelry, and handbags. Management believes the Company's success is dependent upon its ability to differentiate its stores from department stores, mass merchandise discount stores, and competing specialty stores. The key elements of the Company's business are: Merchandise Assortment, Value Pricing, Strip Shopping Center Location, Customer Service, Credit and Layaway Programs.
65GF Score
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