LPL Financial HoldingsLPLA -3.07%82 Current Ratio is 2.41 as of Mar. 2026, which is 55% above its 10-year median of 1.55. GuruFocus rates LPLA with a GF Score™ of 82/100 and a GF Value™ of $461.79 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 687 Capital Markets companies, LPL Financial Holdings ranks better than 50.95% 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. LPL Financial Holdings's current ratio for the quarter that ended in Mar. 2026 was 2.41.
LPL Financial Holdings has a current ratio of 2.41. It generally indicates good short-term financial strength.
The historical rank and industry rank for LPL Financial Holdings's Current Ratio or its related term are showing as below:
LPLA'
s Current Ratio Range Over the Past 10 Years
Min: 1.26 Med: 1.55 Max: 3.03
Current: 2.41
During the past 13 years, LPL Financial Holdings's highest Current Ratio was 3.03. The lowest was 1.26. And the median was 1.55.
LPLA's Current Ratio is ranked better than 50.95% of 687
companies
in the Capital Markets industry
Industry Median: 2.34
vs LPLA: 2.41
LPL Financial Holdings (NAS:LPLA) 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.
LPL Financial Holdings Current Ratio Related Terms
LPL Financial Holdings Current Ratio Historical Data
* 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.
For the Capital Markets subindustry, LPL Financial Holdings'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.
LPL Financial Holdings Current Ratio vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where LPL Financial Holdings'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.
LPL Financial Holdings (LPLA) has a Current Ratio of 2.41 as of Mar. 2026. This is 55% above median its historical median of 1.55. Over the past decade, LPL Financial Holdings' Current Ratio has ranged from 1.26 to 3.03. According to the industry distribution chart, LPL Financial Holdings ranks #337 out of 687 companies in the Capital Markets industry, placing it in the top 49.1%.
Is LPL Financial Holdings' Current Ratio too high?
LPL Financial Holdings' current Current Ratio of 2.41 is 55% above median its 10-year median of 1.55. Over the past 10 years, this metric has ranged from a low of 1.26 to a high of 3.03. The Capital Markets industry median Current Ratio is 2.34. LPL Financial Holdings' value of 2.41 is 3% above this industry median. Based on the distribution chart, LPL Financial Holdings ranks #337 out of 687 companies in the Capital Markets industry, which is above the industry midpoint. Overall, LPL Financial Holdings has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LPL Financial Holdings' Current Ratio compare to TW and IREN?
According to the Capital Markets industry distribution chart, LPL Financial Holdings ranks #337 out of 687 companies for Current Ratio. This puts LPL Financial Holdings in the upper half of its industry. The industry median Current Ratio is 2.34. LPL Financial Holdings' value of 2.41 is 3% above this benchmark. Historically, LPL Financial Holdings' own Current Ratio has ranged from 1.26 to 3.03 over the past decade. While the company's 10-year median is 1.55 vs. the industry median of 2.34, LPL Financial Holdings 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 Capital Markets company?
The median Current Ratio among Capital Markets companies is 2.34, based on 687 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. LPL Financial Holdings's current Current Ratio of 2.41 is 3% 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 Capital Markets industry, the median Current Ratio is 2.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LPL Financial Holdings's current Current Ratio is 2.41, which is 55% above median its own 10-year median of 1.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LPL Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, LPL Financial Holdings (LPLA) is currently considered Significantly Undervalued. The stock's GF Value™ is $461.79, compared to a current price of $268.75 — trading 41.8% below its estimated fair value. The current Current Ratio is 2.41, which is 55% above median its 10-year median of 1.55 and 3% above the Capital Markets industry median of 2.34. LPL Financial Holdings' overall GF Score™ is 82/100 with 4 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 LPL Financial Holdings (LPLA), the current Current Ratio is 2.41 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 LPL Financial Holdings (LPLA) Overvalued in 2026?
Based on GuruFocus' analysis, LPL Financial Holdings stock appears to be undervalued.
The current stock price of $268.75 is trading 41.8% below its estimated GF Value™ of $461.79.
GuruFocus considers LPL Financial Holdings to be Significantly Undervalued.
Key valuation signals for LPLA:
Current Ratio: 2.41 (55% above median its 10-year median of 1.55)
GF Value™: $461.79 vs. price of $268.75 (41.8% below fair value)
Industry Position: 3% above the Capital Markets median (#337 of 687)
No single metric tells the full story. See the LPLA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LPL Financial is the largest US independent broker-dealer, with more than 32,000 financial advisors affiliated with its platform and roughly 11 million customer accounts at the end of 2025. The firm earns the bulk of its profit from interest income earned on client cash balances and from advisory fees and commissions tied to the $2.4 trillion in assets under management or advisory on its platform at year-end 2025. LPL specializes in providing turnkey wealth management services for affiliated independent advisors, but maintains a diverse array of affiliation modalities, running the gamut from more traditional employee models to a pure RIA custody approach. It earns tuck-in revenue from recordkeeping fees and the provision of software tools and services to its advisor base.
82GF Score
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