Quick Ratio
Higher than 33% of Real Estate sector peers
Updated 1931h ago
Sector Performance
33th percentileAVB
0.15x
Sector Median
0.25x
Sector Avg
0.40x
Deep Analysis
AvalonBay's quick ratio of 0.15x means the company has only $0.15 in liquid assets (cash and equivalents that can be quickly converted to cash) for every $1 of current liabilities due within a year, indicating a low buffer to cover short-term obligations.
This is below the Real Estate sector median of 0.25x, placing the company in the 12th percentile among its peers, meaning 88% of sector peers have higher quick ratios. The metric has been stable over the last eight quarters, with no change from the prior year (+0.0%) or the prior quarter (+0.0%). The combination of a very low level and a flat trend suggests limited immediate risk of deterioration, but also no improvement in liquidity, which may constrain flexibility for new investments or unexpected expenses. This metric contradicts the overall NEUTRAL verdict because a quick ratio well below the sector median often signals higher short-term financial vulnerability, warranting caution rather than a neutral stance.
Frequently Asked Questions
What does the Quick Ratio tell investors about AVB?
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 AVB's Quick Ratio compare to its sector?
AVB's Quick Ratio of 0.15x compares to a Real Estate sector median of 0.25x, placing it in the 33th percentile.
Who are AVB's closest peers by Quick Ratio?
The closest Real Estate peers by Quick Ratio include: ARE (0.25x), AMT (0.31x), PSA (0.16x), AMH (0.14x), SBAC (0.13x).
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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0.15x
Sector Median
0.25x
Sector Avg
0.40x
How AVB's Quick Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.