Rackspace TechnologyRXT -6.00%47 Current Ratio is 0.68 as of Mar. 2026, which is 33% below its 10-year median of 1.02. GuruFocus rates RXT with a GF Score™ of 47/100 and a GF Value™ of $1.42 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,864 Software companies, Rackspace Technology ranks worse than 88.48% 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. Rackspace Technology's current ratio for the quarter that ended in Mar. 2026 was 0.68.
Rackspace Technology has a current ratio of 0.68. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Rackspace Technology has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Rackspace Technology's Current Ratio or its related term are showing as below:
RXT'
s Current Ratio Range Over the Past 10 Years
Min: 0.68 Med: 1.02 Max: 1.25
Current: 0.68
During the past 9 years, Rackspace Technology's highest Current Ratio was 1.25. The lowest was 0.68. And the median was 1.02.
RXT's Current Ratio is ranked worse than 88.48% of 2864
companies
in the Software industry
Industry Median: 1.81
vs RXT: 0.68
Rackspace Technology (NAS:RXT) 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.
Rackspace Technology Current Ratio Related Terms
Rackspace Technology Current Ratio Historical Data
* Premium members only.
The historical data trend for Rackspace Technology'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.
For the Software - Infrastructure subindustry, Rackspace Technology'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.
Rackspace Technology Current Ratio vs Software Industry
For the Software industry and Technology sector, Rackspace Technology's Current Ratio distribution charts can be found below:
* The bar in red indicates where Rackspace Technology'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.
Rackspace Technology (RXT) has a Current Ratio of 0.68 as of Mar. 2026. This is 33% below median its historical median of 1.02. Over the past decade, Rackspace Technology's Current Ratio has ranged from 0.68 to 1.25. According to the industry distribution chart, Rackspace Technology ranks #2534 out of 2864 companies in the Software industry, placing it in the top 88.5%.
Is Rackspace Technology's Current Ratio too high?
Rackspace Technology's current Current Ratio of 0.68 is 33% below median its 10-year median of 1.02. Over the past 10 years, this metric has ranged from a low of 0.68 to a high of 1.25. The Software industry median Current Ratio is 1.81. Rackspace Technology's value of 0.68 is 62.4% below this industry median. Based on the distribution chart, Rackspace Technology ranks #2534 out of 2864 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Rackspace Technology has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rackspace Technology's Current Ratio compare to RDWR and GCT?
According to the Software industry distribution chart, Rackspace Technology ranks #2534 out of 2864 companies for Current Ratio. This places Rackspace Technology in the lower half of its industry. The industry median Current Ratio is 1.81. Rackspace Technology's value of 0.68 is 62.4% below this benchmark. Historically, Rackspace Technology's own Current Ratio has ranged from 0.68 to 1.25 over the past decade. While the company's 10-year median is 1.02 vs. the industry median of 1.81, Rackspace Technology 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 2,864 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. Rackspace Technology's current Current Ratio of 0.68 is 62.4% 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 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. Rackspace Technology's current Current Ratio is 0.68, which is 33% below median its own 10-year median of 1.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rackspace Technology stock overvalued right now?
Based on GuruFocus' analysis, Rackspace Technology (RXT) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.42, compared to a current price of $6.82 — trading 379.9% above its estimated fair value. The current Current Ratio is 0.68, which is 33% below median its 10-year median of 1.02 and 62.4% below the Software industry median of 1.81. Rackspace Technology's overall GF Score™ is 47/100 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 Rackspace Technology (RXT), the current Current Ratio is 0.68 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 Rackspace Technology (RXT) Overvalued in 2026?
Based on GuruFocus' analysis, Rackspace Technology stock appears to be overvalued.
The current stock price of $6.82 is trading 379.9% above its estimated GF Value™ of $1.42.
GuruFocus considers Rackspace Technology to be Significantly Overvalued.
Key valuation signals for RXT:
Current Ratio: 0.68 (33% below median its 10-year median of 1.02)
GF Value™: $1.42 vs. price of $6.82 (379.9% above fair value)
Industry Position: 62.4% below the Software median (#2534 of 2864)
No single metric tells the full story. See the RXT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rackspace Technology Inc is an end-to-end, hybrid, multi-cloud technology services company. It designs, builds, and operates its customers' cloud environments across all technology platforms, irrespective of technology stack or deployment model. The company's solutions include Application Services, Data, Colocation, Cloud, Managed Hosting, Professional Services, and Security and Compliance. It has two reportable segments: Private Cloud and Public Cloud. Maximum revenue is generated from the Public Cloud segment, which offers cloud solutions through managed services, elastic engineering, and professional services offerings for customer environments hosted on the AWS, Microsoft Azure, and Google Cloud public cloud platforms. Geographically, the company derives its key revenue from the U.S.
47GF Score
Get the complete analysis for RXT
Current Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
RXT has been successfully added to your 
