Quick Ratio

The quick ratio measures a company’s ability to pay short-term liabilities with its most liquid assets, excluding inventory; BHP’s current 1.25x means it holds $1.25 in cash and near-cash for every $1 of immediate obligations.

This is well below the Basic Materials sector median of 2.03x, placing BHP in the 33rd percentile among peers—indicating less liquidity than two-thirds of comparable firms. Trend data are not available: the year-over-year and quarter-over-quarter changes are both listed as N/A, and no historical values beyond the current 1.25x are provided. The isolated low quick ratio signals a relatively tight liquidity position, but without any trend information, it is unclear whether this level is improving or deteriorating, leaving the risk from poor liquidity unresolved. Given the absence of trend context and the below-median level, this metric introduces a cautionary note that does not actively contradict the overall NEUTRAL verdict—it supports a balanced view by highlighting a specific vulnerability without confirming a clear directional risk.

Frequently Asked Questions

Closest Sector Peers