Quick Ratio
Higher than 66% of Technology sector peers
Updated 646h ago
Sector Performance
66th percentileAMBA
1.90x
Sector Median
1.32x
Sector Avg
11.22x
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 1.32x, placing it in the 66th percentile.
Who are AMBA's closest peers by Quick Ratio?
The closest Technology peers by Quick Ratio include: ADBE (0.79x), ASML (0.70x), STEM (0.69x), BILL (0.69x), GRAB (0.69x).
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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1.90x
Sector Median
1.32x
Sector Avg
11.22x
How AMBA's Quick Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.