Quick Ratio

The quick ratio measures a company’s ability to cover short-term debts using only its most liquid assets (cash, marketable securities, and receivables).

Capital One’s current ratio of 0.35x means it holds only $0.35 of liquid assets for every $1 of short-term liabilities, indicating potential difficulty meeting near-term obligations. This sits just below the Financial Services sector median of 0.37x, placing the company in the 40th percentile among peers. Over the past eight quarters the metric has been decreasing, crashing from 17.22x to 0.35x — a year-over-year and quarter-over-quarter change of –98.0% each, reflecting a one-time structural shift rather than a gradual erosion. The combination of a low absolute level and a steep downward trend signals elevated liquidity risk, as the company now operates with minimal coverage. This metric contradicts the overall NEUTRAL verdict, because the sudden collapse in quick ratio and its position slightly below the sector median suggest a more cautious assessment is warranted.

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