Quick Ratio
Higher than 75% of Industrials sector peers
Updated 1879h ago
Sector Performance
75th percentileAOS
0.95x
Sector Median
0.68x
Sector Avg
1.72x
Deep Analysis
A quick ratio of 0.95x means that for every $1 of current liabilities, A.
O. Smith holds $0.95 in assets that can be quickly converted to cash, excluding inventory. The company’s quick ratio exceeds the Industrials sector median of 0.74x and places it in the 70th percentile of its peers, indicating above-average short-term liquidity. Trend data is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and the only historical value provided is the current 0.95x. The combination of a level above the sector median but below the 1.0x threshold suggests a moderate liquidity position that is neither strained nor ample, while the absence of trend data makes it difficult to assess improvement or deterioration. This metric supports the overall NEUTRAL verdict because the quick ratio is neither decisively weak nor exceptionally strong, aligning with a hold stance.
Frequently Asked Questions
What does the Quick Ratio tell investors about AOS?
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 AOS's Quick Ratio compare to its sector?
AOS's Quick Ratio of 0.95x compares to a Industrials sector median of 0.68x, placing it in the 75th percentile.
Who are AOS's closest peers by Quick Ratio?
The closest Industrials peers by Quick Ratio include: AVY (0.68x), BLDR (0.71x), ROK (0.62x), GXO (0.75x), PLUG (0.61x).
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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0.95x
Sector Median
0.68x
Sector Avg
1.72x
How AOS's Quick Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.