AMBACAUTIOUS

AMBA Quick Ratio Analysis

1.90x

Higher than 73% of Technology sector peers

Updated 2121h ago·SEC filings & market data

Key Takeaway

The quick ratio measures a company's ability to pay its short-term obligations using its most liquid assets, such as cash and receivables.

Sector Performance

73th percentile

AMBA

1.90x

Sector Median

1.25x

Sector Avg

17.80x

Prior Period

1.98x(May 2026)

↓ Declining

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Deep Analysis

The quick ratio measures a company's ability to pay its short-term obligations using its most liquid assets, such as cash and receivables.

At 1.90x, Ambarella holds $1.90 in liquid assets for every $1 of short-term liabilities, indicating a comfortable liquidity position. This ratio sits above the sector median of 1.61x, placing Ambarella in the 63rd percentile among technology peers. Trend data is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and no directional pattern exists for the last eight quarters. With a solid liquidity level but no trend to assess momentum, the metric suggests low immediate risk but offers no insight into improving or weakening conditions. This neutral profile supports the overall NEUTRAL verdict, as the quick ratio is adequate without being a decisive positive or negative factor.

Frequently Asked Questions

What does the Quick Ratio tell investors about AMBA?

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 AMBA's Quick Ratio compare to its sector?

AMBA's Quick Ratio of 1.90x compares to a Technology sector median of 1.25x, placing it in the 73th percentile.

Who are AMBA's closest peers by Quick Ratio?

The closest Technology peers by Quick Ratio include: APH (1.17x), BR (1.08x), ASAN (1.04x), ORCL (1.00x), AAPL (0.91x).

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Learn More About Quick Ratio

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Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

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.