Quick Ratio

The quick ratio measures a company's ability to cover its short-term obligations using its most liquid assets, excluding inventory.

At 0.54x, CL holds only $0.54 of liquid assets for every $1.00 of current liabilities, indicating potential difficulty in meeting near-term debts. This is below the sector median of 0.71x, placing CL in the 34th percentile among peers, meaning 66% of comparable companies have a stronger liquidity position. Trend data is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and there is no historical trend over the last eight quarters. The combination of a low quick ratio and the absence of any trend information leaves investors unable to determine whether liquidity is improving or worsening, which heightens uncertainty. This metric directly supports the overall CAUTIOUS verdict, as the below-median quick ratio signals a liquidity risk that warrants careful monitoring.

Frequently Asked Questions

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