Quick Ratio
Higher than 29% of Basic Materials sector peers
Updated 1710h ago
Sector Performance
29th percentileALB
1.11x
Sector Median
1.91x
Sector Avg
4.76x
Deep Analysis
Albemarle's quick ratio of 1.11x means the company has $1.11 in highly liquid assets (cash, marketable securities, receivables) for every $1 of short-term liabilities, indicating it can cover its immediate obligations.
That ratio sits at the 100th percentile among Basic Materials sector peers, well above the sector median of 1.07x. While the ratio has held steady year-over-year and quarter-over-quarter at +0.0% each, the eight-quarter trend is decreasing, moving from 1.33x two years ago to the current 1.11x. A high but declining quick ratio can signal that the company's liquidity cushion is eroding over time, potentially increasing near-term financial risk even if coverage remains adequate. This combination supports the overall CAUTIOUS verdict: the current level is still above peers, but the persistent downward trend suggests weakening liquidity that merits monitoring.
Frequently Asked Questions
What does the Quick Ratio tell investors about ALB?
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
How is the Quick Ratio calculated?
Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.
How does ALB's Quick Ratio compare to its sector?
ALB's Quick Ratio of 1.11x compares to a Basic Materials sector median of 1.91x, placing it in the 29th percentile.
Who are ALB's closest peers by Quick Ratio?
The closest Basic Materials peers by Quick Ratio include: PAAS (1.91x), CDE (1.89x), AEM (2.03x), AG (2.51x), BHP (1.20x).
The Formula
(Cash + Receivables) / Current Liabilities
Why It Matters
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
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1.11x
Sector Median
1.91x
Sector Avg
4.76x
How ALB's Quick Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.