Elme CommunitiesELME +9.63%36 Current Ratio is 6.64 as of Mar. 2026, which is 672% above its 10-year median of 0.86. GuruFocus rates ELME with a GF Score™ of 36/100 and a GF Value™ of $8.33 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 760 REITs companies, Elme Communities ranks better than 90.26% 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. Elme Communities's current ratio for the quarter that ended in Mar. 2026 was 6.64.
Elme Communities has a current ratio of 6.64. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Elme Communities's Current Ratio or its related term are showing as below:
ELME'
s Current Ratio Range Over the Past 10 Years
Min: 0.08 Med: 0.86 Max: 6.71
Current: 6.64
During the past 13 years, Elme Communities's highest Current Ratio was 6.71. The lowest was 0.08. And the median was 0.86.
ELME's Current Ratio is ranked better than 90.26% of 760
companies
in the REITs industry
Industry Median: 0.98
vs ELME: 6.64
Elme Communities (NYSE:ELME) 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.
Elme Communities Current Ratio Related Terms
Elme Communities Current Ratio Historical Data
* Premium members only.
The historical data trend for Elme Communities'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.
ELME vs FREVS, BRT, MRTI: Current Ratio Comparison
For the REIT - Residential subindustry, Elme Communities'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.
Elme Communities Current Ratio vs REITs Industry
For the REITs industry and Real Estate sector, Elme Communities's Current Ratio distribution charts can be found below:
* The bar in red indicates where Elme Communities'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.
Elme Communities (ELME) has a Current Ratio of 6.64 as of Mar. 2026. This is 672% above median its historical median of 0.86. Over the past decade, Elme Communities' Current Ratio has ranged from 0.08 to 6.71. According to the industry distribution chart, Elme Communities ranks #74 out of 760 companies in the REITs industry, placing it in the top 9.7%.
Is Elme Communities' Current Ratio too high?
Elme Communities' current Current Ratio of 6.64 is 672% above median its 10-year median of 0.86. Over the past 10 years, this metric has ranged from a low of 0.08 to a high of 6.71. The REITs industry median Current Ratio is 0.98. Elme Communities' value of 6.64 is 577.6% above this industry median. Based on the distribution chart, Elme Communities ranks #74 out of 760 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Elme Communities has a GF Score™ of 36/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Elme Communities' Current Ratio compare to FREVS and BRT?
According to the REITs industry distribution chart, Elme Communities ranks #74 out of 760 companies for Current Ratio. This places Elme Communities in the top 10% of its industry — outperforming the majority of peers. The industry median Current Ratio is 0.98. Elme Communities' value of 6.64 is 577.6% above this benchmark. Historically, Elme Communities' own Current Ratio has ranged from 0.08 to 6.71 over the past decade. While the company's 10-year median is 0.86 vs. the industry median of 0.98, Elme Communities has consistently been above 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 REITs company?
The median Current Ratio among REITs companies is 0.98, based on 760 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. Elme Communities's current Current Ratio of 6.64 is 577.6% above 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 REITs industry, the median Current Ratio is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elme Communities's current Current Ratio is 6.64, which is 672% above median its own 10-year median of 0.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elme Communities stock overvalued right now?
Based on GuruFocus' analysis, Elme Communities (ELME) is currently considered Possible Value Trap. The stock's GF Value™ is $8.33, compared to a current price of $1.48 — trading 82.2% below its estimated fair value. The current Current Ratio is 6.64, which is 672% above median its 10-year median of 0.86 and 577.6% above the REITs industry median of 0.98. Elme Communities' overall GF Score™ is 36/100 with 7 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 Elme Communities (ELME), the current Current Ratio is 6.64 as of Mar. 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 Elme Communities (ELME) Overvalued in 2026?
Based on GuruFocus' analysis, Elme Communities stock appears to be undervalued.
The current stock price of $1.48 is trading 82.2% below its estimated GF Value™ of $8.33.
GuruFocus considers Elme Communities to be Possible Value Trap.
Key valuation signals for ELME:
Current Ratio: 6.64 (672% above median its 10-year median of 0.86)
GF Value™: $8.33 vs. price of $1.48 (82.2% below fair value)
Industry Position: 577.6% above the REITs median (#74 of 760)
No single metric tells the full story. See the ELME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elme Communities is a real estate investment trust engaged in owning and operating properties in the greater Washington DC metropolitan area. The company's real estate portfolio is comprised of office, retail, and multifamily properties located near transportation nodes. It derives nearly all of its income in the form of rental revenue from tenants organized into long-term leases. The company's office assets contribute the majority of this income, while the rest is split fairly evenly between its retail and multifamily locations. Elme Communities' tenants are banking, consulting, law, and financial services firms. The company operates in a single reportable segment which includes the ownership, development, redevelopment and acquisition of apartment communities.
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