SoundHound AISOUN +3.39%72 Current Ratio is 3.94 as of Mar. 2026, which is 8% below its 10-year median of 4.27. GuruFocus rates SOUN with a GF Score™ of 72/100 and a GF Value™ of $11.68 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,866 Software companies, SoundHound AI ranks better than 81.02% 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. SoundHound AI's current ratio for the quarter that ended in Mar. 2026 was 3.94.
SoundHound AI has a current ratio of 3.94. 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 SoundHound AI's Current Ratio or its related term are showing as below:
SOUN'
s Current Ratio Range Over the Past 10 Years
Min: 0.31 Med: 4.27 Max: 8.84
Current: 3.94
During the past 6 years, SoundHound AI's highest Current Ratio was 8.84. The lowest was 0.31. And the median was 4.27.
SOUN's Current Ratio is ranked better than 81.02% of 2866
companies
in the Software industry
Industry Median: 1.815
vs SOUN: 3.94
SoundHound AI (NAS:SOUN) 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.
SoundHound AI Current Ratio Related Terms
SoundHound AI Current Ratio Historical Data
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The historical data trend for SoundHound AI'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 - Application subindustry, SoundHound AI'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.
SoundHound AI Current Ratio vs Software Industry
For the Software industry and Technology sector, SoundHound AI's Current Ratio distribution charts can be found below:
* The bar in red indicates where SoundHound AI'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.
SoundHound AI (SOUN) has a Current Ratio of 3.94 as of Mar. 2026. This is near median its historical median of 4.27. Over the past decade, SoundHound AI's Current Ratio has ranged from 0.31 to 8.84. According to the industry distribution chart, SoundHound AI ranks #544 out of 2866 companies in the Software industry, placing it in the top 19%.
Is SoundHound AI's Current Ratio too high?
SoundHound AI's current Current Ratio of 3.94 is near median its 10-year median of 4.27. Over the past 10 years, this metric has ranged from a low of 0.31 to a high of 8.84. The Software industry median Current Ratio is 1.82. SoundHound AI's value of 3.94 is 117.1% above this industry median. Based on the distribution chart, SoundHound AI ranks #544 out of 2866 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, SoundHound AI has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does SoundHound AI's Current Ratio compare to SRAD and BILL?
According to the Software industry distribution chart, SoundHound AI ranks #544 out of 2866 companies for Current Ratio. This places SoundHound AI in the top 19% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.82. SoundHound AI's value of 3.94 is 117.1% above this benchmark. Historically, SoundHound AI's own Current Ratio has ranged from 0.31 to 8.84 over the past decade. While the company's 10-year median is 4.27 vs. the industry median of 1.82, SoundHound AI 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 Software company?
The median Current Ratio among Software companies is 1.82, based on 2,866 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. SoundHound AI's current Current Ratio of 3.94 is 117.1% 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 Software industry, the median Current Ratio is 1.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SoundHound AI's current Current Ratio is 3.94, which is near median its own 10-year median of 4.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SoundHound AI stock overvalued right now?
Based on GuruFocus' analysis, SoundHound AI (SOUN) is currently considered Possible Value Trap. The stock's GF Value™ is $11.68, compared to a current price of $6.41 — trading 45.1% below its estimated fair value. The current Current Ratio is 3.94, which is near median its 10-year median of 4.27 and 117.1% above the Software industry median of 1.82. SoundHound AI's overall GF Score™ is 72/100 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 SoundHound AI (SOUN), the current Current Ratio is 3.94 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 SoundHound AI (SOUN) Overvalued in 2026?
Based on GuruFocus' analysis, SoundHound AI stock appears to be undervalued.
The current stock price of $6.41 is trading 45.1% below its estimated GF Value™ of $11.68.
GuruFocus considers SoundHound AI to be Possible Value Trap.
Key valuation signals for SOUN:
Current Ratio: 3.94 (near median its 10-year median of 4.27)
GF Value™: $11.68 vs. price of $6.41 (45.1% below fair value)
Industry Position: 117.1% above the Software median (#544 of 2866)
No single metric tells the full story. See the SOUN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SoundHound AI Inc is an innovator of conversational intelligence, offering an independent Voice AI platform that enables businesses across industries to deliver high-quality conversational experiences to customers. The company's voice AI delivers speed and accuracy in numerous languages to product creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants via groundbreaking AI-driven products like Smart Answering, Smart Ordering, Dynamic Drive-Thru, and Amelia AI Agents.
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