CMI Quick Ratio Analysis

The quick ratio measures whether a company can cover its short-term debts with its most liquid assets, like cash and receivables, without selling inventory.

CMI’s current 0.90x means it has $0.90 of liquid assets for every $1 of current liabilities due within a year. That sits above the sector median of 0.72x, placing the company in the 61st percentile among peers, so its liquidity position is somewhat stronger than most comparable firms. The metric has been stable over the last eight quarters, with a year-over-year change not available and a quarter-over-quarter dip of -1.1% from 0.91x to 0.90x. This combination of a modestly above-median level and a flat trend implies limited liquidity risk, with no sign of deterioration that would raise immediate concerns. The stability and peer-relative strength do not signal a major opportunity or threat, so this metric supports the overall NEUTRAL verdict rather than contradicting it.

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