Quick Ratio

The Quick Ratio measures a company's ability to cover its short-term obligations using its most liquid assets (cash, marketable securities, and receivables), providing a stricter test than the current ratio.

At 0.92x, CDW has $0.92 of liquid assets for every $1.00 of current liabilities, meaning it cannot fully cover short-term debts with cash and near-cash items alone. This is above the sector median of 0.72x, placing the company in the 65th percentile among peers, indicating a better-than-average liquidity position in its industry. Over the last eight quarters the trend has been stable, but the quarter-over-quarter change shows a decline of 8.9% from 1.01x to 0.92x (year-over-year change is not available). The combination of a level above the sector median with a recent quarterly decline suggests some short-term liquidity tightening, but the absolute ratio remains above peers, implying a moderate risk rather than a pressing concern. This metric supports the overall NEUTRAL verdict: CDW’s quick ratio is neither alarmingly low nor exceptionally strong, consistent with a balanced assessment.

Frequently Asked Questions

Closest Sector Peers