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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. Lumentum Holdings's current ratio for the quarter that ended in Jun. 2026 was 1.68.
Lumentum Holdings has a current ratio of 1.68. It generally indicates good short-term financial strength.
The historical rank and industry rank for Lumentum Holdings's Current Ratio or its related term are showing as below:
XSWX:LITE1'
s Current Ratio Range Over the Past 10 Years
Min: 1.68 Med: 4.46 Max: 7.24
Current: 1.68
During the past 13 years, Lumentum Holdings's highest Current Ratio was 7.24. The lowest was 1.68. And the median was 4.46.
XSWX:LITE1's Current Ratio is ranked worse than 59.77% of 2498
companies
in the Hardware industry
Industry Median: 1.94
vs XSWX:LITE1: 1.68
Lumentum Holdings (XSWX:LITE1) 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.
Lumentum Holdings Current Ratio Related Terms
Lumentum Holdings Current Ratio Historical Data
* Premium members only.
The historical data trend for Lumentum Holdings'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.
XSWX:LITE1 vs HPE, CIEN, MSI: Current Ratio Comparison
For the Communication Equipment subindustry, Lumentum 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.
Lumentum Holdings Current Ratio vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Lumentum 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.
Lumentum Holdings (XSWX:LITE1) has a Current Ratio of 1.68 as of Jun. 2026. This is 62% below median its historical median of 4.46. Over the past decade, Lumentum Holdings' Current Ratio has ranged from 1.68 to 7.24. According to the industry distribution chart, Lumentum Holdings ranks #1493 out of 2498 companies in the Hardware industry, placing it in the top 59.8%.
Is Lumentum Holdings' Current Ratio too high?
Lumentum Holdings' current Current Ratio of 1.68 is 62% below median its 10-year median of 4.46. Over the past 10 years, this metric has ranged from a low of 1.68 to a high of 7.24. The Hardware industry median Current Ratio is 1.94. Lumentum Holdings' value of 1.68 is 13.4% below this industry median. Based on the distribution chart, Lumentum Holdings ranks #1493 out of 2498 companies in the Hardware industry, which is below the industry midpoint. Overall, Lumentum Holdings has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Lumentum Holdings' Current Ratio compare to HPE and CIEN?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #1493 out of 2498 companies for Current Ratio. This places Lumentum Holdings in the lower half of its industry. The industry median Current Ratio is 1.94. Lumentum Holdings' value of 1.68 is 13.4% below this benchmark. Historically, Lumentum Holdings' own Current Ratio has ranged from 1.68 to 7.24 over the past decade. While the company's 10-year median is 4.46 vs. the industry median of 1.94, Lumentum Holdings 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 Hardware company?
The median Current Ratio among Hardware companies is 1.94, based on 2,498 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. Lumentum Holdings's current Current Ratio of 1.68 is 13.4% 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 Hardware industry, the median Current Ratio is 1.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumentum Holdings's current Current Ratio is 1.68, which is 62% below median its own 10-year median of 4.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lumentum Holdings stock overvalued right now?
Lumentum Holdings (XSWX:LITE1) has a current Current Ratio of 1.68. The stock's GF Value™ is CHF132.25, compared to a current price of CHF720.20 — trading 444.6% above its estimated fair value. The current Current Ratio is 1.68, which is 62% below median its 10-year median of 4.46 and 13.4% below the Hardware industry median of 1.94. Lumentum Holdings' overall GF Score™ is 67/100 with 6 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 Lumentum Holdings (XSWX:LITE1), the current Current Ratio is 1.68 as of Jun. 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 Lumentum Holdings (XSWX:LITE1) Overvalued in 2026?
Based on GuruFocus' analysis, Lumentum Holdings stock appears to be overvalued.
The current stock price of CHF720.20 is trading 444.6% above its estimated GF Value™ of CHF132.25.
Key valuation signals for XSWX:LITE1:
Current Ratio: 1.68 (62% below median its 10-year median of 4.46)
GF Value™: CHF132.25 vs. price of CHF720.20 (444.6% above fair value)
Industry Position: 13.4% below the Hardware median (#1493 of 2498)
No single metric tells the full story. See the XSWX:LITE1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lumentum Holdings Inc is a California-based technology firm. The company provides two types of optical and photonic products: optical components that are used in telecommunications networking equipment, and commercial lasers for manufacturing, inspection, and life-science lab uses. Its segments are Optical Communications and Commercial Lasers. The firm is also expanding into new optical applications, such as 3-D sensing laser diode for consumer electronics. It generates maximum revenue from the OpComms segment. The OpComms segment products include a wide range of components, modules, and subsystems to support customers including carrier networks for access (local), metro (intracity), long-haul, and submarine (undersea) applications.
67GF Score
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