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. Zoom Communications's current ratio for the quarter that ended in Apr. 2026 was 4.22.
Zoom Communications has a current ratio of 4.22. 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 Zoom Communications's Current Ratio or its related term are showing as below:
XSWX:ZM'
s Current Ratio Range Over the Past 10 Years
Min: 1.72 Med: 3.8 Max: 4.6
Current: 4.22
During the past 10 years, Zoom Communications's highest Current Ratio was 4.60. The lowest was 1.72. And the median was 3.80.
XSWX:ZM's Current Ratio is ranked better than 82.83% of 2866
companies
in the Software industry
Industry Median: 1.815
vs XSWX:ZM: 4.22
Zoom Communications (XSWX:ZM) 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.
Zoom Communications Current Ratio Related Terms
Zoom Communications Current Ratio Historical Data
* Premium members only.
The historical data trend for Zoom 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.
XSWX:ZM vs FICO, TEAM, ROP: Current Ratio Comparison
For the Software - Application subindustry, Zoom 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.
Zoom Communications Current Ratio vs Software Industry
For the Software industry and Technology sector, Zoom Communications's Current Ratio distribution charts can be found below:
* The bar in red indicates where Zoom 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.
Zoom Communications (XSWX:ZM) has a Current Ratio of 4.22 as of Apr. 2026. This is 11% above median its historical median of 3.80. Over the past decade, Zoom Communications' Current Ratio has ranged from 1.72 to 4.60. According to the industry distribution chart, Zoom Communications ranks #492 out of 2866 companies in the Software industry, placing it in the top 17.2%.
Is Zoom Communications' Current Ratio too high?
Zoom Communications' current Current Ratio of 4.22 is 11% above median its 10-year median of 3.80. Over the past 10 years, this metric has ranged from a low of 1.72 to a high of 4.60. The Software industry median Current Ratio is 1.82. Zoom Communications' value of 4.22 is 132.5% above this industry median. Based on the distribution chart, Zoom Communications ranks #492 out of 2866 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Zoom Communications has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Zoom Communications' Current Ratio compare to FICO and TEAM?
According to the Software industry distribution chart, Zoom Communications ranks #492 out of 2866 companies for Current Ratio. This places Zoom Communications in the top 17% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.82. Zoom Communications' value of 4.22 is 132.5% above this benchmark. Historically, Zoom Communications' own Current Ratio has ranged from 1.72 to 4.60 over the past decade. While the company's 10-year median is 3.80 vs. the industry median of 1.82, Zoom Communications 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. Zoom Communications's current Current Ratio of 4.22 is 132.5% 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. Zoom Communications's current Current Ratio is 4.22, which is 11% above median its own 10-year median of 3.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zoom Communications stock overvalued right now?
Zoom Communications (XSWX:ZM) has a current Current Ratio of 4.22. The stock's GF Value™ is CHF63.80, compared to a current price of CHF68.47 — trading 7.3% above its estimated fair value. The current Current Ratio is 4.22, which is 11% above median its 10-year median of 3.80 and 132.5% above the Software industry median of 1.82. Zoom Communications' overall GF Score™ is 85/100 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 Zoom Communications (XSWX:ZM), the current Current Ratio is 4.22 as of Apr. 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 Zoom Communications (XSWX:ZM) Overvalued in 2026?
Based on GuruFocus' analysis, Zoom Communications stock appears to be overvalued.
The current stock price of CHF68.47 is trading 7.3% above its estimated GF Value™ of CHF63.80.
Key valuation signals for XSWX:ZM:
Current Ratio: 4.22 (11% above median its 10-year median of 3.80)
GF Value™: CHF63.80 vs. price of CHF68.47 (7.3% above fair value)
Industry Position: 132.5% above the Software median (#492 of 2866)
No single metric tells the full story. See the XSWX:ZM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zoom Communications provides a video-first communications platform that connects people through frictionless video, voice, chat, and content sharing. The company's cloud-native platform enables video experiences and connects users across various devices and locations in a single meeting. Zoom has launched a variety of communications-related solutions, including Zoom Phone and Zoom Contact Center. The firm was founded in 2011 and serves companies of all sizes from all industries around the world.
85GF Score
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