Ribbon CommunicationsRBBN +5.17%56 Current Ratio is 1.37 as of Mar. 2026, which is 1% above its 10-year median of 1.36. GuruFocus rates RBBN with a GF Score™ of 56/100 and a GF Value™ of $2.98 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,862 Software companies, Ribbon Communications ranks worse than 64.78% 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. Ribbon Communications's current ratio for the quarter that ended in Mar. 2026 was 1.37.
Ribbon Communications has a current ratio of 1.37. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ribbon Communications's Current Ratio or its related term are showing as below:
RBBN'
s Current Ratio Range Over the Past 10 Years
Min: 0.73 Med: 1.36 Max: 2.49
Current: 1.37
During the past 13 years, Ribbon Communications's highest Current Ratio was 2.49. The lowest was 0.73. And the median was 1.36.
RBBN's Current Ratio is ranked worse than 64.78% of 2862
companies
in the Software industry
Industry Median: 1.81
vs RBBN: 1.37
Ribbon Communications (NAS:RBBN) 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.
Ribbon Communications Current Ratio Related Terms
Ribbon Communications Current Ratio Historical Data
* Premium members only.
The historical data trend for Ribbon Communications'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.
RBBN vs XPER, SVCO, RMNI: Current Ratio Comparison
For the Software - Application subindustry, Ribbon Communications'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.
Ribbon Communications Current Ratio vs Software Industry
For the Software industry and Technology sector, Ribbon Communications's Current Ratio distribution charts can be found below:
* The bar in red indicates where Ribbon Communications'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.
Ribbon Communications (RBBN) has a Current Ratio of 1.37 as of Mar. 2026. This is near median its historical median of 1.36. Over the past decade, Ribbon Communications' Current Ratio has ranged from 0.73 to 2.49. According to the industry distribution chart, Ribbon Communications ranks #1854 out of 2862 companies in the Software industry, placing it in the top 64.8%.
Is Ribbon Communications' Current Ratio too high?
Ribbon Communications' current Current Ratio of 1.37 is near median its 10-year median of 1.36. Over the past 10 years, this metric has ranged from a low of 0.73 to a high of 2.49. The Software industry median Current Ratio is 1.81. Ribbon Communications' value of 1.37 is 24.3% below this industry median. Based on the distribution chart, Ribbon Communications ranks #1854 out of 2862 companies in the Software industry, which is below the industry midpoint. Overall, Ribbon Communications has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ribbon Communications' Current Ratio compare to XPER and SVCO?
According to the Software industry distribution chart, Ribbon Communications ranks #1854 out of 2862 companies for Current Ratio. This places Ribbon Communications in the lower half of its industry. The industry median Current Ratio is 1.81. Ribbon Communications' value of 1.37 is 24.3% below this benchmark. Historically, Ribbon Communications' own Current Ratio has ranged from 0.73 to 2.49 over the past decade. While the company's 10-year median is 1.36 vs. the industry median of 1.81, Ribbon Communications 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 Software company?
The median Current Ratio among Software companies is 1.81, based on 2,862 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. Ribbon Communications's current Current Ratio of 1.37 is 24.3% 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 Software industry, the median Current Ratio is 1.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ribbon Communications's current Current Ratio is 1.37, which is near median its own 10-year median of 1.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ribbon Communications stock overvalued right now?
Based on GuruFocus' analysis, Ribbon Communications (RBBN) is currently considered Modestly Undervalued. The stock's GF Value™ is $2.98, compared to a current price of $2.34 — trading 21.5% below its estimated fair value. The current Current Ratio is 1.37, which is near median its 10-year median of 1.36 and 24.3% below the Software industry median of 1.81. Ribbon Communications' overall GF Score™ is 56/100 with 3 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 Ribbon Communications (RBBN), the current Current Ratio is 1.37 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 Ribbon Communications (RBBN) Overvalued in 2026?
Based on GuruFocus' analysis, Ribbon Communications stock appears to be undervalued.
The current stock price of $2.34 is trading 21.5% below its estimated GF Value™ of $2.98.
GuruFocus considers Ribbon Communications to be Modestly Undervalued.
Key valuation signals for RBBN:
Current Ratio: 1.37 (near median its 10-year median of 1.36)
GF Value™: $2.98 vs. price of $2.34 (21.5% below fair value)
Industry Position: 24.3% below the Software median (#1854 of 2862)
No single metric tells the full story. See the RBBN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ribbon Communications Inc provides communications technology to service providers and enterprises, offering software and high-performance hardware products, network solutions, and services for secure data and voice communications, as well as high-bandwidth networking for residential and enterprise customers across industries such as finance, education, government, utilities, and transportation. It operates through two segments: Cloud and Edge, which generate maximum revenue and deliver software-centric, cloud-native solutions for VoIP, VoLTE, VoNR, and unified communications, and IP Optical Networks, which support growing telecommunications traffic from 5G, distributed cloud computing, and other applications. The Company generates the majority of its revenue from the United States.
56GF Score
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